BuzzFeed soars on reports of Meta deal, plans to use OpenAI

BuzzFeed soars on reports of Meta deal, plans to use OpenAI

Jan 26 (Reuters) – Shares of BuzzFeed Inc (BZFD.O) jumped on Thursday on reports of a take care of Meta Platforms Inc (META.O) and plans to use synthetic intelligence to personalize and improve the digital media agency’s on-line quizzes and content material.

The inventory was 19% greater in prolonged buying and selling, after greater than doubling in worth earlier within the day as a Wall Street Journal report mentioned it will use ChatGPT creator OpenAI for its content material.

Buzzfeed, in an emailed response to Reuters, mentioned “we’re not utilizing ChatGPT – we’re utilizing OpenAI’s publicly out there API (utility programming interface).”

Earlier within the day, the inventory had jumped 50% on a separate report by the Journal that mentioned Meta was paying BuzzFeed tens of millions of {dollars} to deliver extra creators to Facebook and Instagram.

The deal, reached final yr, was valued at close to $10 million and BuzzFeed will assist generate content material for Meta’s platforms and practice creators to develop their presence on-line, the report had mentioned, citing folks aware of the state of affairs.

“In 2023, you may see AI impressed content material transfer from an R&D stage to half of our core enterprise, enhancing the quiz expertise, informing our brainstorming, and personalizing our content material for our viewers,” BuzzFeed Chief Executive Jonah Peretti mentioned in memo to staff reviewed by Reuters.

The inventory closed at $2.09 after touching a excessive of $2.45.

Indicating curiosity from retail merchants, BuzzFeed shares have been among the many high three orders on Fidelity’s platform on Thursday.

Shares of the corporate, valued at $132 million, have tanked greater than 90% to Wednesday’s shut since going public in December 2021 via a reverse merger with a particular function acquisition firm (SPAC).

The firm mentioned final month it will minimize about 12% of its workforce to rein in prices. Its third-quarter web loss had widened to $27 million from $3.6 million a yr in the past.

Reporting by Medha Singh and Shreyaa Narayanan in Bengaluru, further reporting by Ankika Biswas; Editing by Shinjini Ganguli, Sriraj Kalluvila and Devika Syamnath

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