The Artifact application struggled to gain widespread popularity, but the underlying AI technology is poised to reach a significantly larger audience.
Written by David Pierce, an editor-at-large and Vergecast co-host with extensive experience in consumer tech spanning over a decade, having previously worked at Protocol, The Wall Street Journal, and Wired.
Despite Instagram’s co-founders creating a robust tool for recommending news, they faced challenges in scaling its adoption. On the other hand, Yahoo boasts a vast readership but seeks to infuse a tech-savvy appeal to distinguish itself from other news aggregators on the internet. Consequently, Yahoo has announced its acquisition of Artifact, marking a strategic collaboration between the two entities.
While the financial details of the acquisition remain undisclosed, both parties clarified that Yahoo’s primary focus lies in obtaining Artifact’s technology rather than assimilating its team. Although Artifact’s co-founders, Mike Krieger and Kevin Systrom, will serve as “special advisors” to Yahoo, they will not be joining the company. The remaining five members of Artifact’s team have either transitioned to new roles or opted for a period of respite.
This acquisition follows Artifact’s launch by just over a year and comes on the heels of Systrom and Krieger announcing the discontinuation of the app three months earlier. In their statement released in January, the co-founders acknowledged the niche group of dedicated users but concluded that the market potential did not justify further investment. Their decision to shut down Artifact stemmed from a strategic shift towards pursuing ventures with broader outreach and impact. The core belief driving Artifact was the transformative potential of AI technology, hinting at more compelling projects beyond a news application with limited audience engagement.
Interestingly, Systrom and Krieger opted not to explore acquisition offers or seek additional funding post the app’s closure. As the sole investors in Artifact, they operated the business efficiently and felt prepared to move on. However, their stance shifted when several companies expressed interest. Systrom revealed engaging in approximately 10 discussions with potential suitors following the shutdown announcement. Reflecting on this unexpected turn of events, Systrom noted a heightened industry interest in news and personalized content, driven by the emergence of AI advancements.
Among the suitors, Yahoo emerged as a prominent contender. Kat Downs Mulder, Yahoo News’ general manager, shared that the decision to pursue Artifact stemmed from a deep appreciation for the meticulous content taxonomy and recommendation systems developed by Artifact. Yahoo’s extensive user base, with over 180 million monthly visitors to Yahoo News, presents a substantial platform for Artifact’s personalized content technologies to thrive. This collaboration not only expands Artifact’s reach but also offers Yahoo a competitive edge in content personalization.
While Artifact’s app will be phased out post-acquisition, its innovative technologies for content categorization, curation, and personalization will be integrated into Yahoo News and potentially other Yahoo platforms. Downs Mulder hinted at the gradual incorporation of Artifact’s features into Yahoo’s products, enhancing user experience and content relevance.
Both Systrom and Downs Mulder emphasized the meticulous approach required for integrating Artifact’s technology into Yahoo’s ecosystem, highlighting the need for a gradual transition. The envisioned outcome is an accelerated evolution towards a personalized content landscape, akin to a “TikTok for text,” catering to modern user preferences. Systrom remains optimistic about the future, focusing on ensuring a seamless transition to Yahoo while contemplating new ventures in the realm of AI and large language models.
As Systrom navigates the current transition, he remains committed to exploring groundbreaking ideas, driven by a profound belief in the transformative power of AI. While the journey ahead is uncertain, Systrom’s entrepreneurial spirit remains undeterred, actively seeking the next innovative opportunity following the success of Artifact.
