BuzzFeed has launched a new company called Branch Office to develop consumer-facing artificial intelligence applications, marking a strategic pivot as the media company confronts significant financial challenges. The announcement was made by BuzzFeed co-founder and CEO Jonah Peretti at the SXSW conference in Austin.
New Apps Target Online Culture
Branch Office, led by BuzzFeed director of product Bill Shouldis, introduced its first two applications: BF Island and Conjure. BF Island is a group chat platform featuring AI tools for editing photos. Its central feature is an in-app library of current online trends and memes curated by an editorial team, designed to prompt users to create AI-generated images referencing fleeting internet phenomena.
The second app, Conjure, resembles the temporary photo app BeReal but guides users to take daily pictures of specific subjects beyond themselves. During a demonstration, a prompt asked, “What lies between the trees and the moon?” leading to a photo of the night sky. Shouldis described Conjure as having an “AI spirit for a CEO.”
Peretti also showcased Quiz Party, a social app for taking BuzzFeed quizzes with friends. “We’ve been working on this secretly for over a year,” Peretti told the audience. “Using AI is the way of connecting people, building community around these pillars of culture, and taste, and community.”
Audience Reaction and Financial Context
The presentation was met with a muted response from the SXSW audience, described as silence punctuated by polite laughter. The launch follows a recent disclosure from BuzzFeed expressing “substantial doubt” about its ability to continue as a going concern. The company reported a net loss of $57.3 million last year and stated it would focus on its Studio intellectual property and new AI applications in the current year.
During a question-and-answer session, an audience member noted that BeReal struggled with user retention after its initial novelty faded. When asked how Conjure would address similar challenges, Shouldis said the app would evolve. “It will have different types of things happening and not just be exactly what it is today,” he stated, suggesting potential integrations with video, audio, and prototyping tools like Claude Code to build community.
Strategic Shift for the Media Company
The move represents a significant shift for BuzzFeed, a company best known for viral quizzes, listicles, and a Pulitzer Prize-winning journalism division it has since scaled back. Peretti framed the development as an extension of years of AI experimentation at BuzzFeed. “In a way, software is the new content,” he remarked during the presentation.
The company’s strategy hinges on the premise that AI can accelerate software development, allowing for faster iteration to maintain user engagement. However, the presentation suggested the apps were conceived more around AI capabilities than clear user demand, a potential hurdle for adoption.
What Comes Next
BuzzFeed’s immediate future depends on the performance of these new ventures and its ongoing efforts to address liquidity challenges. The success of Branch Office and its AI app portfolio now forms a core part of the company’s plan to stabilize its financial position and find a sustainable revenue model in a rapidly changing digital media landscape. The company is engaged in strategic conversations focused on fixing its liquidity issues, according to its recent statements.
For more information on corporate disclosures, visit the U.S. Securities and Exchange Commission website. Details on the SXSW conference can be found on its official platform.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
