Reddit COO sets 1 billion-user goal as ads and AI deals fuel growth

Reddit is aiming for 1 billion users as it tries to turn its vast web of discussion forums into a larger advertising and AI data business. Chief operating officer Jen Wong told Fortune the company is still early in building both its products and its revenue model, even after going public and reaching profitability.

The target marks a sharp shift for a platform long known for unruly communities, volunteer moderation and users who often distrust corporate messaging. Wong argued to Fortune that Reddit’s value has risen as the wider internet fills with synthetic media and low-quality AI-generated material, because its appeal rests on direct exchanges between people.

A broader audience

Fortune reported that Reddit now draws more than 120 million daily users across more than 100,000 active communities. The U.K. is its second-largest market after the U.S., and more than half of its U.K. users are women, according to Fortune.

The site’s communities, known as subreddits, cover subjects ranging from skincare and travel planning to career advice, vintage cameras and sourdough pizza. Users can vote posts up or down, helping determine which discussions rise to wider attention.

Reddit has also had to police darker corners of the service. Fortune noted that the platform has hosted hateful speech, conspiracy theories and misinformation, and that Reddit has banned entire communities when discussions have moved toward extremism or violence.

Advertising becomes the core business

Reddit began selling ads in 2006 but did not invest heavily in advertising technology until 2018, Wong told Fortune. In the company’s latest quarterly results, 94% of revenue came from advertising, according to Fortune.

Wong said Reddit users remain wary of marketing and are quick to challenge brand activity that feels artificial. She told Fortune the company believes commercialization can work if brands add value rather than force themselves into communities.

Reddit’s business pitch now includes promoted posts that fit into existing discussions, Fortune reported. The company has also introduced brand accounts for customer service and product conversations, while testing commerce features around recommendations and buying behavior already happening on the platform.

That model depends in part on the site’s volunteer moderators, who set rules and enforce standards inside individual communities. Wong told Fortune those moderators are independent and are not paid by Reddit, a structure that helps define the platform but can also limit how fast the company pushes commercial programs.

AI licensing adds a new revenue stream

Reddit’s archive of conversations has become valuable to artificial intelligence companies seeking access to human-written material. Fortune reported that Reddit signed licensing agreements with Google and OpenAI in 2024, allowing those companies legal access to Reddit data for AI training and products.

The deals point to a business model beyond traditional advertising, with Reddit treating its conversation archive as an asset in its own right. Wong told Fortune that the platform’s human discussion base is being appreciated more as users look for recommendations they consider more authentic than search-optimized websites or polished marketing copy.

The approach carries risks, Fortune reported. If users believe their contributions are being turned into unpaid training material, or if AI-generated posts begin to crowd the site, Reddit could weaken the authenticity that makes its data useful to advertisers, users and AI companies.

Wong told Fortune Reddit also wants to support offline communities that grow out of online forums, including local running groups and hobby meetups. The company’s challenge is to expand toward its 1 billion-user goal while keeping the user-driven culture that made Reddit commercially valuable.

This story draws on original reporting from Fortune.