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

Shares of BuzzFeed Inc. prolonged positive factors to greater than double in worth on Thursday on reviews the digital media agency was planning to make use of synthetic intelligence to personalize and improve its on-line quizzes and content material.

“In 2023, you’ll see AI inspired content move from an R&D stage to part of our core business, enhancing the quiz experience, informing our brainstorming, and personalizing our content for our audience,” Chief Executive Jonah Peretti stated in memo to workers reviewed by Reuters.

The Wall Street Journal, which first reported the event, stated the corporate would use ChatGPT creator OpenAI for its content material.

The inventory surged as a lot as 157% to $2.45 and was on monitor for its busiest session. They have been buying and selling about 50% larger earlier within the day after a separate report by the Journal stated Meta Platforms Inc. was paying BuzzFeed thousands and thousands of {dollars} to deliver extra creators to Facebook and Instagram.

The deal, reached final yr, was valued at near US$10 million and BuzzFeed will assist generate content material for Meta’s platforms and prepare creators to develop their presence on-line, the report stated, citing individuals acquainted with the state of affairs.

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

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

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

(Reporting by Medha Singh and Shreyaa Narayanan in Bengaluru, extra reporting by Ankika Biswas; Editing by Shinjini Ganguli and Sriraj Kalluvila)