Reddit CEO Steve Huffman has flagged the growing disruption artificial intelligence is causing to traditional internet search, as AI-powered tools change how users discover information online.
His remarks highlight the challenges facing a business model that has supported digital platforms and publishers for decades, in which search engines direct users to websites that monetise the resulting traffic.
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In a post on X, The Kobeissi Letter quoted Huffman as saying that Google's AI Mode was no longer driving traffic to websites.
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"AI mode does not drive traffic, not for us and not to anybody as far as I know. It used to be a traffic driver. Now it's not," Huffman was quoted as saying.
The comments come as Reddit reported a meaningful decline in search referral traffic during the September quarter, with the fall accelerating towards the end of the period. Huffman said the trend had continued into the early part of the December quarter.
During Reddit's third-quarter earnings call on Thursday, October 29, Huffman said search traffic had declined by more than 1 million referrals on average per week during October.
Reddit CEO Flags Changing Internet Search Behaviour
Huffman said web search was evolving from a gateway that directed users to websites into an AI-powered destination in itself.
"The biggest impact was on logged out and web traffic, but some of the impact flows through to logged in and app traffic, since search referral is a common source of re-engagement for users," he said.
He warned that if the current rate of decline continued, Reddit's total daily active unique users (DAUq) could fall by a low double-digit percentage in the December quarter from its existing base of 130 million.
The CEO, however, argued that AI search and Reddit serve different purposes. While AI-powered search can provide information, it cannot replicate the community interactions and personal experiences that users seek on Reddit.
"AI does not fulfill people's fundamental need for community, connection, and belonging with other people, and it lacks context and nuance," Huffman said.
Reddit's earnings call has exposed the new reality for thousands of companies. "AI mode does not drive traffic. Not for us and not to anybody as far as I know. It used to be a traffic driver. Now it's not." - Reddit CEO. The reality is that AI is fundamentally changing the way that humans access the internet. Just 24 hours prior to this statement, Google's stock erased -$480 billion on the same issue: AI is disrupting the traditional search model. For decades, the internet operated on a simple model. Search engines directed users to websites, and those websites monetized the traffic. AI is destroying this business model, and it's happening at an accelerating pace. The traditional model of internet traffic is rapidly becoming outdated. The internet has entered a new era.
— The Kobeissi Letter (@KobeissiLetter) October 30, 2026
Reddit Looks To Build Direct User Engagement
The company is looking to reduce its dependence on external search referrals by turning Reddit into a direct daily destination for users.
Huffman said logged-in and app users grew sequentially in the September quarter. Together, these users account for more than 80% of Reddit's monetisation.
Reddit is also working on improving personalisation, app performance and user retention. The company plans to begin testing a logged-in-only experience in select markets outside the US during the December quarter. The results of these tests will help inform how Reddit could introduce an optimised version of the experience globally.
Despite the pressure on search referrals, Reddit reported 53% revenue growth in the September quarter, while its trailing 12-month revenue crossed $3 billion.
Yesterday's earnings call with Reddit's CEO will be referenced for years to come. Reddit, $RDDT, is now down -42% in 8 trading days. AI has disrupted search, and the internet more broadly, forever. Our thoughts on this are included below. https://t.co/BJ7S85Ackb
— The Kobeissi Letter (@KobeissiLetter) October 30, 2026
Reddit Shares Fall 42% In Eight Sessions, Google Loses $480 Billion
The Kobeissi Letter also highlighted the sharp fall in Reddit's share price, claiming that the stock (RDDT) had declined 42% in just eight trading sessions.
In an earlier post, the account said Google's market capitalisation had fallen by $480 billion in a single day amid concerns over AI-driven disruption to its traditional search business.
The developments have brought renewed attention to the potential impact of AI-powered search on the internet's traditional traffic and advertising-driven business models. For companies that have relied on search engines to attract users, the shift could require a rethink of how they build audiences, retain users and generate revenue.
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