BuzzFeed sells “Hot Ones” in shift to AI content creation

The media landscape continues to shift as BuzzFeed makes significant strategic moves, selling off successful human-driven content while betting on artificial intelligence to secure its future.

Major business decision: BuzzFeed has agreed to sell First We Feast, creator of the popular interview show “Hot Ones,” for $82.5 million as part of its debt reduction strategy.

• The sale will help reduce BuzzFeed’s debt from $124 million to approximately $35.2 million
• This follows the February 2024 sale of Complex for $108.6 million
• The company’s stock has plunged over 36 percent in the five days following the announcement

AI transformation strategy: CEO Jonah Peretti has positioned artificial intelligence as the cornerstone of BuzzFeed’s future business model.

• Peretti claims generative AI will replace most static content, with audiences expecting intelligent, dynamic experiences
• The company plans to invest in “scalable and tech-enabled services” and AI-powered interactive experiences
• Previous AI initiatives include automated travel guides and a recipe-generating system called Botatouille, both of which faced significant criticism

Recent financial challenges: BuzzFeed has weathered several setbacks in its attempt to remain financially viable.

• The company’s stock fell below $1 per share in 2023, risking NASDAQ delisting
• BuzzFeed shut down its award-winning news division in April 2023
• The stock has since recovered to approximately $3.43 per share, though still well below its peak

Market skepticism: The strategy of replacing successful human-created content with AI-generated material has drawn criticism from industry observers.

• Critics point out the irony of selling a successful, relatively low-cost show built around human personality
• Social media commentary highlights skepticism about replacing authentic content with AI-generated alternatives
• Previous AI content initiatives have been criticized for producing repetitive and low-quality material

Strategic implications: BuzzFeed’s pivot to AI represents a risky bet on automated content creation over proven human-driven formats.

The decision to divest successful traditional media properties while doubling down on AI technology marks a decisive moment for digital media, raising questions about whether algorithmic content can truly replace the human elements that often drive viral success and audience engagement.