Yahoo has confirmed its purchase of Artifact, a news platform powered by artificial intelligence and co-created by the founders of Instagram. This development aims to incorporate Artifact’s advanced technology across Yahoo’s various news platforms and websites in the United States, highlighting the tech giant’s strategy to enhance its digital media presence amidst the competitive advertising landscape dominated by industry giants such as Alphabet and Meta Platforms, according to Reuters.

In a move reflecting the harsh realities faced by digital media startups in scaling operations and generating revenue, Artifact had previously declared the discontinuation of its application in January, citing the lack of a viable market opportunity as the reason for halting further development.

Yahoo, which was acquired by Apollo Global Management for $5 billion in 2021, also has a stake in Taboola, a content recommendation engine. While the financial details of the Artifact acquisition remain undisclosed, Yahoo’s portfolio, including TechCrunch, Engadget, and Yahoo Finance, is set to benefit from Artifact’s AI-driven content personalization technology, enhancing the user experience with more tailored news content.

Artifact’s inception in early 2023 by Kevin Systrom and Mike Krieger, ex-Meta executives known for their pivotal role at Instagram until their exit in 2018 due to disagreements with Meta CEO Mark Zuckerberg over Instagram’s future direction, marks a significant milestone. Yahoo has announced that Systrom and Krieger will offer advisory support throughout the transition phase, contributing their expertise to Yahoo’s evolving digital strategy.