When you run out of ideas in your B2C business the answer is always pigeonhole some B2B model on top of it whether it fits or not.

Reddit is an ad business. Increasingly a mobile ad business. 3rd party apps do not fit that business model and never has. Everyone is blowing it out of proportion because Spez didn't want to be honest about it.

AI/LLM is just a sweetner on top but probably not a billion dollar API business.

What Reddit should be doing is making a better mobile app (and web app at that). Design and software dev in general has not their strong suit and hasn't been for the last decade.