Yahoo is buying Artifact, the AI news app from the Instagram co-founders
Instagram’s creators developed a robust tool for recommending news content to readers, but struggled to expand its reach. Meanwhile, Yahoo, boasting a massive readership, sought to infuse its platform with cutting-edge technology to distinguish itself in the crowded landscape of news aggregators. Thus, the two entities have decided to join forces, with Yahoo acquiring Artifact, as announced on Tuesday.
Although the financial details of the acquisition were not disclosed, both parties emphasized that Yahoo is primarily acquiring Artifact’s technology rather than its team. Artifact’s co-founders, Mike Krieger and Kevin Systrom, will serve as “special advisors” to Yahoo but will not be joining the company. The remaining five employees of Artifact have either secured new positions elsewhere or plan to take a break.
This acquisition comes shortly after Artifact’s launch, and about three months following the announcement of its closure by Systrom and Krieger. In their statement in January, they acknowledged the product’s appeal to a devoted user base but concluded that the market opportunity wasn’t significant enough to justify further investment. Their decision stemmed from a desire to focus on endeavors with broader reach and impact.
Following the shutdown announcement, Systrom revealed that several companies expressed interest in acquiring Artifact. Yahoo emerged as a potential suitor, intrigued by Artifact’s innovative technology and its potential to enhance personalized content delivery. Kat Downs Mulder, Yahoo News’s general manager, highlighted Artifact’s expertise in content taxonomy and recommendation systems, areas where Yahoo sought improvement.
While Artifact’s app will cease to exist after the acquisition, its technology will integrate into Yahoo News and eventually extend to other Yahoo platforms. Both Systrom and Downs Mulder acknowledge that this integration process will be gradual and require careful implementation. Nevertheless, they envision a future where Yahoo develops a personalized content ecosystem while Artifact powers innovative news services.
As for Systrom, he remains uncertain about his next venture, currently focusing on ensuring a smooth transition to Yahoo. Nonetheless, he remains optimistic about the potential of AI and continues to explore new ideas. Reflecting on Artifact’s journey, he emphasizes that entrepreneurship is not bound by seasons, and he remains on the lookout for the next promising opportunity.
