Yahoo Acquires Artifact News Platform From Instagram Founders

Yahoo acquired Artifact's artificial intelligence (AI)-backed news platform (photo: x @yahoo)

Yahoo announced on Tuesday April 2, that it had acquired Artifact's artificial intelligence (AI)-backed news platform, founded by Instagram founders. They will combine its technology across news services and internet service providers' websites (ISPs) in the United States.

The deal marks ongoing difficulties for media startups struggling to increase revenue at a time when Big Tech giants like Alphabet and Meta Platforms are picking up most advertising sales.

In January, Artifact announced in a blog post that it would be discontinuing its app operations because "market opportunities are not large enough to justify sustainable investment in this way."

Yahoo, which also has news brands such as TechCrunch, Engadget, and Yahoo Finance, says AI-based recommendation machines and other features of Artifact will help improve their news operations and provide audience-personalized content.

This online publisher also has a minority stake in the Taboola content recommendation platform.

Yahoo, which declined to share financial details, was purchased by private equity firm Apollo Global Management for $5 billion in 2021.

Artifact was launched in early 2023 by Systrom and Mike Kriegier. They previously worked on Meta, then known as Facebook, after the company's acquisition of Instagram in 2012.

The duo left the Facebook owner at the end of 2018, which several media reports later explained due to strained ties with Meta boss Mark Zuckerberg and differences in their vision for Instagram.

According to Yahoo, Systrom and Krieger will work with Yahoo in advisory capacity during this transition.