Hello, tech fans! Today, we’re diving into how Reddit is boosting its earnings with the help of artificial intelligence and new advertising tools.

Reddit reported impressive second-quarter earnings, highlighting a big push into AI. The company’s main income still comes from ads, which raked in $465 million, making up 93% of all revenue.

Recently, Reddit introduced features like Reddit Insights, giving advertisers real-time trend analysis from its vast content, and Conversation Summary Add-ons, which showcase public opinions within ads. These advancements aim to make advertising more engaging and data-driven.

The company’s data licensing revenue, a part of its ‘other revenue’ category, also saw a healthy 24% growth year-over-year, reaching $35 million. Major AI companies like Google and OpenAI now have licensing agreements with Reddit, indicating a solid long-term income stream.

Another exciting AI tool is Reddit Answers, launched in December, which offers conversational responses and attracts around 6 million weekly users—up from just 1 million earlier this year. Reddit plans to further embed this feature into its core search experience to enhance user interaction.

Reddit’s CEO Steve Huffman also mentioned that the platform is actively working to deepen the integration of these AI tools, making them central to user experience and engagement strategies.

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