Embracing AI didn't do BuzzFeed's financials any favors
BuzzFeed, who's been going all-in on AI use lately, just faced another setback in trying to stay afloat in the bleak media landscape: A steep drop in its stock price this morning.
BuzzFeed’s financial woes have been exacerbated by its heavy investment in artificial intelligence (AI), according to recent developments. Despite CEO Bryon Allen’s Allen Family Digital’s majority stake and Peretti’s transition to a hands-on AI-focused role, the company’s stock price has plummeted to $0.50 – a dramatic fall from its previous high of $2.09.
In Q3, BuzzFeed reported a staggering net loss of $18.7 million, a stark contrast to the previous earnings per share of -$0.22. This comes after Allen’s decision to lay off 180 employees, or about one-third of BuzzFeed’s workforce, as part of cost-cutting measures. Peretti, who had championed AI integration for boosting productivity, claimed that the tech would "keep human creativity at the core" and generate revenue for the media giant.
However, the company's recent financial performance suggests that the implementation of AI may not be the panacea for BuzzFeed’s financial struggles.
Written by urgent.news from The A.V. Club's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
