Did Perplexity Sign a Deal with Reddit?

We (xfunnel.ai) have seen a sudden surge in Reddit citations on Perplexity AI that prompted us to think there is a possible content deal between Perplexity and Reddit. As we analyzed 561,415 citations from February 9 to April 6, 2025 – we started seeing that references to Reddit in Perplexity's answers spiked dramatically in late March. On March 16, 2025, only 0.11% of Perplexity's cited sources were linked to Reddit. By April 6, 2025, that share had jumped to 4.55% of all Perplexity citations. This roughly forty-fold increase over just a few weeks marks a significant deviation from prior weeks, when Reddit rarely appeared in Perplexity's source list, which would strengthen Reddit's CEO anger against AI Companies for Using Its Data Without Paying, unless there's a deal in place.

Reddit citations in Perplexity AI showing a dramatic increase in early 2025.

It's important to note that Reddit has engaged in notable data licensing deals with major AI companies – just not (publicly) with Perplexity. In 2024, as Reddit sought to monetize its vast user-generated content and diversify revenue ahead of its IPO, the company struck agreements with both Google and OpenAI:

Google Deal (February 2024)

Reddit reportedly signed a $60 million per year contract with Google to make Reddit's content available for training Google's AI models. This deal grants Google real-time API access to Reddit data for use in its AI projects (notably the Gemini AI model). In return, Google is helping improve Reddit's own search capabilities with Google's AI technology. This was Reddit's first major licensing deal with an AI firm, reflecting a new revenue stream from its data.

OpenAI Deal (May 2024)

A few months later, Reddit announced a partnership with OpenAI to integrate Reddit content into ChatGPT. Under this deal, ChatGPT and other OpenAI services gained access to Reddit's Data API, allowing real-time Reddit discussions to inform chatbot answers. OpenAI, in turn, became an official Reddit advertising partner as part of the arrangement. This partnership enabled ChatGPT to surface Reddit posts (within policy limits) and signaled Reddit's openness to working with AI companies beyond just training data deals.

These confirmed deals underscore that Reddit is actively licensing its data to AI platforms – for the right price or partnership terms. Reddit's leadership has been vocal that companies should pay for accessing their data, and the Google and OpenAI agreements set the precedent. No similar deal with Perplexity AI has been disclosed, which is why the sudden rise in Perplexity's Reddit citations is so intriguing.

Overall trend of Reddit citations across major AI search engines in 2025.

We're seeing this across all engines - Reddit is a major source, used by all AI search engines. In one case, we saw one reddit conversation appear in 15% of all responses (across hundreds of questions) for one company. AI search engines are looking for authoritative sources, and preferably human sources in many cases - and there is nothing better than Reddit for that. Any marketer that is focusing on AI search visibility on Perplexity, ChatGPT, and Gemini needs to strongly consider prioritizing how the engagement around their brand and products on Reddit - it's impact goes way beyond Reddit itself, and will likely continue to do so.

About the Author

A seasoned entrepreneur who co-founded and led a startup in the U.S. for nearly seven years. With deep expertise in AI and go-to-market strategy, Neri has invested in and consulted with numerous ventures, bringing invaluable insights into how generative AI and LLMs are reshaping the future of business discovery.

As the co-founder of xfunnel.ai, Neri is pioneering new approaches to help businesses understand and optimize their presence across AI-powered platforms, ensuring brands are accurately represented in the rapidly evolving landscape of AI search.

You can follow him on LinkedIn.