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Their hosting costs I'm sure are astronomical; my guess is that honestly that's most of it.
They're also, if my very limited experience with them is any guide, phenomenally incompetent with their advertising in a way that I'm sure kneecaps what should be a goldmine of ad revenue. You know those brain damaged ads like "Megathread: Why you should move all your money to Schwab" or otherwise trying to imitate Reddit terminology in the least convincing way possible? That's because Reddit tells their advertisers to do that. For real, it's worth looking over Reddit's ad materials sometime, because they are pants-on-head mentally disabled in a way that's honestly a little hard to believe if you haven't checked them out for yourself.
A single million of dollars will buy you a fucking lot of hosting and connectivity.
Unless you spend it on a cloud provider, of course. But reddit is older than the modern cloud providers.
Reddit migrated to cloud providers and it's a major part of how they serve videos. They don't self host or cache and peer that stuff. Their bills are astronomical, like vimoe. It was a dumb move in my opinion and I don't see how they'll ever reach profitability because of it.
https://www.datacenterdynamics.com/en/news/reddit-uses-aws-and-google-cloud-plans-to-spend-at-least-385m-on-cloud-by-september-2026/
$400 million in 2 years on cloud hosting.
And how much content are they hosting? Some months ago, I did a search for reply formatting tips - and got an entry from 14 years ago. Do they really have the whole of Reddit available like that, or have they put Some of it in cold storage?
Hell if I know, I'm sure most of their R&D budget is focused on figuring out just how to dig themselves out of the cloud pit before it gets deeper. I doubt the storage is the most expensive part of things. It's paying for serving everyone internationally with all the interconnect that's getting them.