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00:02Reddit warned that Google's AI overviews are creating uncertainty for search traffic as
00:07AI-generated summaries reduce referrals from traditional search results, according to CNBC.
00:12CEO Steve Huffman said Google's traditional search links created substantial value across
00:17the internet, while AI overviews have not yet produced a comparable benefit.
00:22Reddit reported second quarter revenue and earnings that beat expectations
00:26and issued a stronger-than-expected outlook, but shares fell 11% in extended trading
00:32as investors focused on search traffic risks.
00:36Google didn't respond to CNBC's request for comment.
00:39Huffman said Reddit is improving its products and user retention to convert search visitors
00:45into direct users while evaluating its long-term options.
00:49He also said Reddit aims to generate AI returns without heavy infrastructure spending
00:53and believes users still want human perspectives.
00:56rather than AI summaries.
00:58For all things money, visit Benzinga.com.
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