AI's Traffic Problem: Reddit CEO Says AI Mode No Longer Drives Clicks
Reddit's CEO stated on its earnings call that AI mode no longer drives traffic to anyone — a stark signal about how AI is cannibalizing web traffic rather than distributing it, with broad implications for ad-revenue-dependent businesses.
What we know
An account on X highlights the key quote from Reddit's earnings call (2.4k likes, 191k views): "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." This lands alongside another account on X flagging that AI revenue is growing 14x but prices are falling 19x per year — a structural tension. Another account on X separately reports AI default risk has tripled since January. On the infrastructure side, semiconductor data tells a mixed story: DRAM prices rising 13-18% QoQ in Q4, while MediaTek's AI ASIC business is booming at $2.5B in Q4 alone. Sam Altman adds a risk dimension: Another account on X quotes him warning that AI models are finding "far more software vulnerabilities than anyone expects."
By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.