Shares of BuzzFeed rose significantly after CEO Jonah Peretti announced the business would employ the ChatGPT and DALL-E maker OpenAI’s application programming interface to tailor quizzes for users.
The closing price for BZFD shares was $2.09, with after-hours trading driving the price higher. The stock had previously closed at $0.95.
In a statement to the team, Peretti announced that starting next month, the “AI inspired content” would leave the research and development phase and become “part of our core business beginning next month.”
“To be clear, we see the breakthroughs in AI opening up a new era of creativity that will allow humans to harness creativity in new ways with endless opportunities and applications for good, In publishing, AI can benefit both content creators and audiences, inspiring new ideas and inviting audience members to co-create personalized content. When you see this work in action it is pretty amazing,” he wrote.
Peretti provided a sneak peek of the AI-powered quizzes during an all-hands meeting with the company, using an example where the quiz would create a romantic comedy plot for a user based on their responses to prompts and timed to Valentine’s Day.
According to a business representative, BuzzFeed will not be using OpenAI’s API to produce news pieces.
Shares of the $132 million firm, which were reverse merged with a special purpose acquisition company in December 2021, had fallen more than 90%.