{"id":9417,"date":"2026-03-13T18:08:42","date_gmt":"2026-03-13T18:08:42","guid":{"rendered":"https:\/\/musictechohio.online\/site\/buzzfeed-disastrous-earnings-ai\/"},"modified":"2026-03-13T18:08:42","modified_gmt":"2026-03-13T18:08:42","slug":"buzzfeed-disastrous-earnings-ai","status":"publish","type":"post","link":"https:\/\/musictechohio.online\/site\/buzzfeed-disastrous-earnings-ai\/","title":{"rendered":"BuzzFeed Nearing Bankruptcy After Disastrous Turn Toward AI"},"content":{"rendered":"
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In January 2023, BuzzFeed <\/em>CEO Jonah Peretti announced in a memo to staff<\/a> that the company was making a hard pivot to AI \u2014 years before the word \u201cslop\u201d was added to the public lexicon.<\/p>\n

In the memo, which was published roughly two months after OpenAI unveiled its groundbreaking ChatGPT chatbot, Peretti said BuzzFeed <\/em>would be using the software to enhance the company\u2019s infamous quizzes by generating personalized responses. <\/p>\n

The company\u2019s stock price jumped aggressively, from around $3 per share to north of $15. But longer-term, neither insiders nor the public were particularly compelled<\/a> by the move. Nonetheless, Peretti doubled down, promising in May 2023<\/a> that AI will \u201creplace the majority of static content\u201d on the site, just a month after shuttting down<\/a> its Pulitzer Prize-winning BuzzFeed News<\/em> division.<\/p>\n

Reality soon set in. The AI quizzes were underwhelming, and the site was soon caught publishing entire AI-generated articles<\/a> that were sloppy and repetitive. After the initial spike in enthusiasm, the company\u2019s stock took a massive beating<\/a>; as of this week, its shares are hovering around 70 cents.<\/p>\n

Now, three years after its AI pivot, the writing is on the wall. The company reported a net loss of $57.3 million in 2025 in an earnings report released on Thursday<\/a>. In an official statement<\/a>, the company glumly hinted at the possibility of going under<\/a> sooner rather than later, writing that \u201cthere is substantial doubt about the Company\u2019s ability to continue as a going concern.\u201d<\/p>\n

The company\u2019s chief financial officer, Matt Omer, admitted that the company was having \u201cstrategic conversations\u201d about relieving its liquidity issues.<\/p>\n

\u201cThree years ago we had over $180 million in debt \u2014 we\u2019ve reduced that by more than 65 percent,\u201d he said. \u201cWhile we\u2019ve significantly reduced operating costs and real estate obligations, we\u2019re still facing legacy commitments that are burdening the business.\u201d<\/p>\n

The brutal reality check seemingly hasn\u2019t put Peretti off from pursuing AI, though. He now says he\u2019s hoping to bring \u201cnew AI apps to the market\u201d this year.<\/p>\n

More on Buzzfeed:<\/strong> BuzzFeed Is Quietly Publishing Whole AI-Generated Articles, Not Just Quizzes<\/em><\/a><\/p>\n

The post BuzzFeed Nearing Bankruptcy After Disastrous Turn Toward AI<\/a> appeared first on Futurism<\/a>.<\/p>\n<\/div>\n

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In January 2023, BuzzFeed CEO Jonah Peretti announced in a memo to staff that the company was making a hard pivot to AI \u2014 years before the word \u201cslop\u201d was…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[177,3841],"tags":[],"class_list":["post-9417","post","type-post","status-publish","format-standard","hentry","category-artificial-intelligence","category-ethics"],"_links":{"self":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/9417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/comments?post=9417"}],"version-history":[{"count":0,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/posts\/9417\/revisions"}],"wp:attachment":[{"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/media?parent=9417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/categories?post=9417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/musictechohio.online\/site\/wp-json\/wp\/v2\/tags?post=9417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}