Here Is Why BuzzFeed Stock Soared 120%

BuzzFeed Inc stock jumped 120% on Thursday following reports that the online-media firm was looking to use OpenAI to enhance content creation. Following the surge, the company’s market value jumped to almost $300 million. In addition, the report triggered a trading craze that saw 190 million shares exchanging hands. 

BuzzFeed to incorporate ChatGPT in its business 

CEO Jonah Peretti indicated in a memo to staff that AI-focused content will be part of the company’s main business in 2023, as well as boosting the firm’s popular quizzes. But, most importantly, Peretti explained that artificial intelligence innovations would open up a new creativity age. 

Peretti explained that the tech would be employed in creating quizzes, aiding in content customization for its audience, and brainstorming. For instance, AI tech can help audiences and content creators in publishing by rousing new ideas and inviting users to co-create tailored content. Perreti explained that BuzzFeed is looking to lead the future of artificial intelligence-inspired content. 

According to a spokeswoman, BuzzFeed will leverage OpenAI’s openly accessible app programming interface. The shift to AI-assisted material happens as OpenAI’s popular chatbot continues to face criticism from both detractors and supporters.

Since its launch in November, ChatGPT, an AI application from OpenAI, has taken the internet by storm, gaining over a million users in a few days and igniting a new discussion about the use of artificial intelligence in the workplace. In addition, Microsoft Corp. announced at the start of the week that it would fund OpenAI with $10 billion.

The rise in BuzzFeed’s stock brings to mind the blockchain and cryptocurrency frenzy witnessed five years back when stocks soared whenever a firm could announce entry or a partnership in the sector. 

According to Cowen researchers, the integration of AI will cut content creation costs, but the impact of the increasing adoption of the technology is unclear. 

The content creation industry adopting OpenAI’s tech

Many industry leaders are increasingly predicting that AI will transform their industries. So far, BuzzFeed is the largest digital content producer that has declared intentions to incorporate OpenAI’s tech into its operations. However, other content creators are also taking similar steps. 

For instance, recently, CNET utilized AI technology to assist in story creation. However, there were some mistakes, and several articles finally needed correction. Connie Guglielmo, CNET’s Editor-In-Chief, expressed regret because of the errors and assured that they had already placed new processes in place to avoid such mistakes in the future.

The Wall Street Journal had earlier reported BuzzFeed’s intentions and indicated that the online media firm was engaging creators to create content for Meta Platforms Inc. According to sources familiar with the matter, the engagement with Facebook’s parent company is part of a $10 million deal.

BuzzFeed went public in 2021 via a merger with a SPAC and last year shrunk its news division in a bid to be profitable. However, a spokeswoman said that the company is still keen on human-generated reporting.