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Yahoo acquires Instagram co-founders' AI-powered news platform Artifact

Earlier this year, Artifact said that it would wind down operations of its app as "the market opportunity isn't big enough to warrant continued investment"

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Image: Yahoo Mail

Reuters Bengaluru

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Yahoo said on Tuesday, it had acquired Instagram co-founders' AI-driven news platform, Artifact, and will incorporate its technology across the U.S. web services provider's news and other sites.
The deal signals continued pain for media start-ups struggling to grow revenue at a time when Big Tech giants Alphabet and Meta Platforms attract the bulk of advertising sales.
In January, Artifact said in a blogpost it would wind down operations of its app as "the market opportunity isn't big enough to warrant continued investment in this way." Yahoo, which also owns news brands TechCrunch, Engadget and Yahoo Finance, said Artifact's AI-powered recommendation engine and other features will help scale its news operations and deliver personalized content to audience.
screenshot
Artifact on its website
The online publisher also owns a minority stake in content recommendation platform Taboola.
Yahoo, which declined to share financial details, was bought out by private equity firm Apollo Global Management for $5 billion in 2021.
Artifact was launched in early 2023 by Systrom and Mike Krieger. They were earlier at Meta, then known as Facebook, after the company's acquisition of Instagram in 2012.
The duo had left the Facebook owner in late 2018, which some
media reports
later described as due to their strained relationship with Meta boss Mark Zuckerberg and differences in their visions for Instagram.
Systrom and Krieger will work with Yahoo in an advisory capacity during this transition, Yahoo said in a statement.
 

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First Published: Apr 03 2024 | 12:25 PM IST

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