Reddit (RDDT.US) shares continued their decline, extending the previous trading session's 5% drop. As of press time, the stock fell over 9% to $209.16. Recent data shows that Reddit content citations in AI chatbot ChatGPT plummeted sharply in mid-September, raising investor concerns about the platform's position in the AI era.
According to data from AI search engine tracking platform Promptwatch, ChatGPT cited Reddit content in only 2% of its responses on Tuesday, significantly down from 9.7% last month. During the peak period in early September, this percentage once exceeded 14%. Despite this decline, Reddit remains the most frequently cited social platform by ChatGPT, with an average citation rate of 4.3% in September. In comparison, LinkedIn, ranked second, had a citation rate of only 0.4% in ChatGPT responses.
Reddit has long been viewed as a social version of a search engine, with users commonly adding "reddit" to their search queries to find practical advice and user guides. However, with the rise of AI chatbots, traditional search resources face potential "substitution threats."
To address these challenges, Reddit has secured data licensing agreements worth billions of dollars with OpenAI and Google (GOOG.US, GOOGL.US), allowing its content to be used for training AI models. Additionally, the company has launched its own AI search and advertising tools to further expand its commercialization pathways.