A bet on video and AI
In May, a family-owned company linked to TV host Byron Allen acquired a controlling stake in BuzzFeed. Peretti, who had advocated for AI for years and announced the launch of several AI-based apps, took on a new role: “president of BuzzFeed AI.”
Allen owns 13 local TV stations that are part of broadcast networks. After the deal, he said BuzzFeed and HuffPost planned to develop free streaming video, audio and user-generated content. The company also intended to use AI to build a free video service that could compete with YouTube.
The bet did not stop cost-cutting: about two months after Allen’s arrival, BuzzFeed laid off 33% of its remaining employees. The report also notes that Google acknowledges a decline in ad revenue as AI develops. Against this backdrop, BuzzFeed’s plans to launch a free video service look especially risky.
How the AI bet unfolded
BuzzFeed began adopting AI in 2023, after OpenAI released ChatGPT. The company used it to create quizzes that were quickly forgotten and unusual AI-generated travel guides. These pieces drew sharp criticism.
In May, shortly after the deal with Allen, Peretti spoke with The Verge. He called AI the area that excited him most and suggested the technology would create a new kind of content that digital media had not previously been able to offer. The report says there is no evidence of that yet.
In Dataist’s view, the share-price decline and staff cuts show that the AI bet has not yet solved BuzzFeed’s financial problems. The company continues to count on AI and free video, but the strategy’s results are not yet visible.
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