BuzzFeed stock pops after announcing plans to incorporate ChatGPT into content

Yahoo Finance Live looks at BuzzFeed shares as the media company plans to craft "personalized" content using ChatGPT.

Video Transcript


- My play is BuzzFeed. Wow, what a story today, the stock a rocket ship. A trending ticker on Yahoo Finance all day, the company, the latest publisher to embrace artificial intelligence announcing it will now incorporate ChatGPT creator OpenAI to enhance its quizzes and personalize some of its content for audiences. An internal memo for BuzzFeed from its CEO Jonah Peretti reads in part, "the future of digital media will be defined by two major trends-- creators, and AI," and there's the magic word. Adding, they intend to "build the premier platform for AI-powered content." Also news from the Wall Street Journal that BuzzFeed is getting paid millions of dollars by Facebook parent company Meta to help generate creator content for both Facebook and Instagram.

Check out the stock. Up at one point, more than 150%. It's now still up more than 130%. Perspective though, folks, this is still a $2 stock. It's still down more than 40% over the last 12 months, but investors are very excited because somebody needed to be the face of AI-generated content. It looks like it's going to be BuzzFeed, but we found out it is riddled with errors, those who have relied on it early on. Exciting, terrifying for a lot of content creators.

- It is. It's terrifying, but I also think it's important to point out, like you were saying, it hasn't always worked out. We know CNET started experimenting with ChatGPT back in November. They recently released that information, but clearly there have been some errors in those articles. One was just about how much money you would get if you deposited $10,000 into a savings account that earns 3%. The article said you would actually get $10,300 instead of $300. So CNET had to issue that correction. Yes, this is very exciting, Dan, but I still have some questions, just how much people are going to be able to rely and really trust on that information that they're always reading if it is generated just by AI ChatGPT.

- Yeah, I want a job, so burn it all to the ground.


- [LAUGHS] It's interesting because you look at something like ChatGPT, it's not accurate, right? It's based on data from 2021. You can't ask it what the weather is. Even if you do start to bring it into things like-- Microsoft wants to bring it into Bing, and obviously Microsoft's a big investor in that. It's interesting, but it's not going to be the end-all, be-all of AI. People are impressed with it because when you read it, it looks like natural voice, right? It looks like someone wrote this. You can give it a prompt, and it can say something or give you something really impressive. But the reality is it's not as smart as you think it is. It's just feeding off of what it's been taught. It's not going to be, like-- this is the very baby steps of AI.

- So our jobs are safe?

- For now.

- For now is the key there. Now, they say all their newsroom jobs will remain humans, but once this door is creaked open, it's just a matter of time when, not if--

- I'm worried.

- --it is wide open. We should all be.