Reddit moves to logged-in experience as AI search traffic declines

Reddit announced Thursday it will transition to a primarily logged-in experience, citing declining search traffic driven by AI-powered search tools. The move aims to protect its data from AI scraping and boost revenue through licensing deals and better ad targeting. The company reported flat global daily active users at 130.3 million in Q3, with U.S. users dropping 2% year-over-year to 50.7 million. Search referrals fell by over 1 million weekly in October, and Reddit warned daily actives could decline by a low-double-digit percentage next quarter. Revenue rose 53% to $895 million, with U.S. revenue per daily active user up 53% to $13.82. Reddit will test the logged-in shift in select non-U.S. markets in Q4, with no global timeline yet. CEO Steve Huffman called it a major evolution, while noting logged-out access and anonymity options, including incognito mode, will remain. The change signals broader challenges for the open web amid AI-driven traffic shifts.