BuzzFeed stock zoomed more than 200% during Thursday’s trading session as the media house announced the use of OpenAI tools for content production.
On Thursday, January 26, BuzzFeed (NASDAQ: BZFD) said that would be using OpenAI, the creators of the popular ChatGPT platform, and leverage artificial intelligence to create content for its audience. This is the first big announcement by a media company to leverage the new tech into their business which has positively influenced BuzzFeed stock.
ChatGPT has created a major buzz recently in the market and has stunned people worldwide with its prowess. Businesses worldwide are already experimenting with this OpenAI tool to create contextual and effective content pieces in the shortest time.
In a memo to employees, Jonah Peretti, BuzzFeed’s co-founder and chief executive that they can expect “AI-inspired content” to “move from an R&D stage to part of our core business”. She also noted that ChatGPT could be specifically useful in creating quizzes, in content brainstorming, as well as in assisting personalized content to its audience.
However, BuzzFeed is still not willing to use the AI tool to write stories. Company co-founder Peretti further added:
“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,” Peretti added, vowing to “lead the future of AI-powered content.”
This news was enough to send BuzzFeed stock soaring on Thursday. During yesterday’s trading session, the BZFD stock ended 120% in the green at $2.09. At one point during the trading session, the stock gained as much as 200% with a high of $2.72.
Use of AI by Media Companies
As per several reports, tools like ChatGPT and others are likely to make content creation much easier for users in the future. Experts in the media industry believe that artificial intelligence will completely revolutionize businesses.
Currently, BuzzFeed is the biggest digital content creator for implementing OpenAI’s technology into its business, but it’s not alone. Another media house CNET is also using artificial intelligence to write stories. However, the process didn’t go very smoothly as expected. A number of articles written using AI tools still required corrections.
Earlier this week on Wednesday, CNET Editor-In-Chief Connie Guglielmo had to apologize for the errors and assumed that there are new processes in place to correct them in the future. “The process may not always be easy or pretty, but we’re going to continue embracing it – and any new tech that we believe makes life better,” Guglielmo wrote.
Coming to BuzzFeed, tech giant Meta has also announced it would pay the media house millions of dollars in a deal to bring more creators to Facebook and Instagram.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
