Reddit CEO Steve Huffman Calls Platform 'Fuel' For AI Growth

Reddit Inc. (NYSE:RDDT) CEO Steve Huffman argued Thursday that the platform's years of user discussions have become a key ingredient for artificial intelligence systems. He called the platform "the fuel" behind the rapidly expanding technology.

Speaking on Mad Money with Jim Cramer, Huffman emphasized that AI systems depend heavily on real-world human knowledge, much of which is found in Reddit's user-generated discussions. "There's no artificial intelligence without actual intelligence," Huffman said, noting that Reddit serves as a key source of authentic data that both AI systems and users increasingly rely on.

Reddit’s Unique Role In AI Development

Huffman highlighted Reddit's "lightweight" operating model as a key differentiator in the AI landscape. Unlike major cloud and AI infrastructure providers, the company does not invest heavily in data centers or compute capacity.

Capital expenditures were about $1 million for the first quarter, far below what major cloud and AI infrastructure companies typically commit.

"We're a lightweight company," he said. "We're not building data centers … we're building a consumer product for people." He argued that structure lets Reddit participate in AI-driven demand without the same scale of spending on compute.

Underappreciated AI Winner

Huffman called Reddit one of the most underappreciated winners of the artificial intelligence boom. "People want what Reddit has," he said, "What we've seen over the last couple of years with the rise of AI is that the whole market now is learning that Reddit is the fuel for it."

He cited deals with Alphabet Inc (NASDAQ:GOOGL) (NASDAQ:GOOG) and OpenAI as signs that large AI builders value access to Reddit's content. According to CNBC, those relationships reflect broader demand for real-world, user-generated information used to train and improve models.

Can Reddit Outpace Tech Giants In AI?

Reddit reported strong first-quarter results, with revenue rising 69% from a year earlier to $663 million and daily active users increasing 17% to 126.8 million.

Huffman said, "This marks our seventh consecutive quarter with revenue growth over 60%, with industry-leading gross margins over 90%, an adjusted EBITDA margin of 40% and record cash flow of more than $300 million."

Benzinga Edge Stock Rankings indicate that RDDT maintains a strong price trend in the short term, with a solid Growth score in the 98th percentile.

Price Action: Reddit shares are up 12.5% after hours on Thursday to $165.62.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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