BuzzFeed Bets on AI Apps Amid Revenue Crisis and Skepticism
BuzzFeed, the digital media company once celebrated for its viral quizzes and Pulitzer-winning journalism, is making a high-stakes bet on artificial intelligence to secure its future. At the SXSW conference in Austin, CEO Jonah Peretti unveiled Branch Office, a new spin-off company acting as an AI incubator. Its mission is to develop consumer-facing applications, with three initial apps debuted as the company seeks to reinvent itself and find a new revenue lifeline. This strategic pivot comes as BuzzFeed, like many digital media empires built on social traffic and advertising, faces a severe financial crisis, with one report noting it is nearing bankruptcy. The move represents the latest in a series of attempts to pivot the business, following shifts toward video, commerce, and subscriptions. Peretti first announced a focus on AI three years ago, a decision that was met with a mix of skepticism and outright disgust from observers. The public and industry reaction to the new AI initiatives has been notably cautious. A demonstration of the apps at SXSW was reportedly met with uncomfortable laughter, underscoring the challenge BuzzFeed faces in convincing both users and critics of the value of its AI-driven future. Despite the financial pressure and a skeptical reception, Peretti remains committed to the AI strategy, promising to bring more apps to market this year in a bid to turn the company around.
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The report came roughly three years after BuzzFeed CEO Jonah Peretti first announced that the company was doubling down on AI, news that was met with a mix of reactions, ranging from skepticism to outright disgust. Then, during this year’s SXSW in Austin, Texas, the company made good on Peretti’s threat to bring a slew of “AI apps...
The brutal reality check seemingly hasn’t put Peretti off from pursuing AI, though. He now says he’s hoping to bring “new AI apps to the market” this year. More on Buzzfeed: BuzzFeed Is Quietly Publishing Whole AI-Generated Articles, Not Just Quizzes
Companies that built empires on Facebook traffic and programmatic advertising are watching those revenue streams dry up. Many have tried to pivot - to video, to commerce, to newsletters, to subscriptions. Now AI is the latest lifeline. But if the SXSW demos are any indication, simply slapping ...
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