Yahoo has announced its acquisition of the artificial intelligence-based news platform Artifact, aiming to enhance its news services.
It is planned that the American company will incorporate the technologies of the startup company into its services in the United States and other countries.
The deal signifies the ongoing challenges faced by emerging media companies in increasing revenues, while simultaneously Meta and Google continue to dominate the larger share of advertising revenues.
Artifact announced earlier this year that it would cease its operations as the market did not provide sufficient opportunities to justify continued investment.
Yahoo stated that the use of the AI-based recommendation platform from Artifact and its other features will work towards expanding its news operations and providing tailored content for the audience.
The company has not yet disclosed the details of the recent financial deal.
Yahoo also owns several popular news platforms such as TechCrunch, Engadget, Yahoo Finance, and holds a stake in the Taboola recommendation platform.
Yahoo was sold to Apollo Global Management in 2021 for $5 billion.
Artifact was launched in early 2023 by Kevin Systrom and Mike Krieger, who were the founders of Instagram before it was acquired by Meta.
The duo left Meta, then known as Facebook, at the end of 2018 due to their disagreement with Meta’s CEO, Mark Zuckerberg, and their differing views on the Instagram platform.
Yahoo announced in a statement that Systrom and Krieger will provide consulting services to Yahoo during a transitional period.
