Embracing AI didn't do BuzzFeed's financials any favors

BuzzFeed going all-in on AI amid ongoing financial struggles (namely, millions in debt) has backfired. This morning, the company’s stock price plummeted to $0.50, a far cry from a previous high of $2.09, Futurism reported. That’s on top of a bleak earnings per share of -$0.22 in Q3. The steep stock price decline came just a few months after Bryon Allen’s Allen Family Digital bought a majority stake in BuzzFeed. As part of the deal, Allen took over as the CEO, while Jonah Peretti moved to a newly created role as President of BuzzFeed AI. “After 20 years as CEO of BuzzFeed, I’m excited to switch my focus to a more hands-on role developing products and technology that are only possible because of recent advances in AI,” Peretti said at the time. “I’m convinced that AI will fundamentally transform the media industry and empower creative people to build in new ways, and I believe the opportunity is enormous.”