BuzzFeed pivots to AI apps via new incubator Branch Office
BuzzFeed is attempting a strategic pivot toward artificial intelligence, launching a new spin-off incubator dubbed Branch Office. The initiative, announced by CEO and co-founder Jonah Peretti at the SXSW conference in Austin, aims to develop consumer-facing applications centered on creativity and social connection.
The launch arrives at a precarious moment for the media company. Just days prior, BuzzFeed disclosed “substantial doubt” regarding its ability to continue as a going concern, citing significant liquidity challenges and a net loss of $57.3 million recorded last year. The company is now pinning its recovery hopes on its Studio IP and this new suite of AI-driven products.
The New App Portfolio
Bill Shouldis, a director of product at BuzzFeed and founder of Branch Office, unveiled the initial lineup of applications:
- BF Island: A group chat platform that utilizes AI for photo editing. It incorporates an editorial-curated library of memes and internet trends to encourage user-generated content.
- Conjure: A daily photo-sharing app reminiscent of BeReal, which prompts users to capture images based on specific, often abstract, themes.
- Quiz Party: A social interface designed for friends to engage with BuzzFeed’s signature quizzes together.
Market Reception
The presentation at SXSW faced a lukewarm reception. During the demo, the audience remained largely silent, with occasional uncomfortable laughter. Questions from attendees challenged the longevity of these apps, specifically concerning retention rates and whether they offer sufficient value to maintain a user base beyond the initial novelty.
Shouldis defended the approach, suggesting that the software will evolve to incorporate video, audio, and prototyping tools like Claude Code. Peretti maintained that the internal development effort, which has been ongoing for over a year, is essential for the company’s future, stating, “In a way, software is the new content.”
