Shares of Reddit (RDDT) dropped sharply by 9% following reports that the company might not renew its $60 million partnership with Google focused on artificial intelligence.
This news comes despite Reddit's impressive first-quarter performance, where advertising revenue climbed 74%, defying concerns about content licensing challenges.
According to sources familiar with the situation, uncertainty over the renewal of this AI collaboration has unsettled investors, triggering the sell-off. The partnership with Google had been a significant driver for Reddit's AI and data capabilities.
