BuzzFeed Founder Bets on AI to Revive Struggling Digital Media Company

Jonah Peretti launches new AI-focused subsidiary 'Branch Office' as BuzzFeed faces financial troubles

Mar. 20, 2026 at 9:04am

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BuzzFeed founder Jonah Peretti is turning to artificial intelligence in a bid to revive the struggling digital media company. Facing a cash crunch and declining stock price since going public in 2021, Peretti is launching a new subsidiary called Branch Office that will develop AI-powered applications and games. The goal is to reduce BuzzFeed's reliance on digital advertising revenue and instead generate more income from subscription-based AI products. Peretti says Branch Office will operate independently and be inspired by companies like Nintendo, focusing on human connection, community, and aesthetic experiences.

Why it matters

BuzzFeed was once hailed as the future of digital media, but the company has fallen on hard times as tech giants like Google and Facebook have siphoned away advertising dollars from online publishers. Peretti's move to embrace AI represents a high-stakes gamble to transform BuzzFeed's business model and find new revenue streams beyond the volatile digital ad market.

The details

To turn BuzzFeed around, Peretti is betting on Branch Office, a new subsidiary that will use AI to build interactive games, communities, and other applications. The first three games in development are 'Conjure,' a mystery game where players solve clues by uploading photos, 'BF Island,' a chat app for sharing inside jokes, and 'Quiz Party,' a community for creating and sharing BuzzFeed-style quizzes. Peretti believes these types of AI-powered, community-focused experiences will become increasingly important as the media industry evolves.

  • BuzzFeed told investors last week that it faced a cash crunch and was at risk of not continuing as a business.
  • The company lost $10.9 million in cash last year and is carrying $58.4 million in debt.
  • BuzzFeed's stock has cratered since it went public in 2021.

The players

Jonah Peretti

The founder of BuzzFeed who is now betting on AI to revive the struggling digital media company.

Branch Office

A new subsidiary of BuzzFeed that will use AI to build interactive games, communities, and other applications.

Bill Shouldis

The founder of Branch Office, who will operate the subsidiary independently from the main BuzzFeed business.

NBCUniversal

An investor that put $400 million into BuzzFeed in the 2010s at a peak valuation of $1.7 billion.

Disney

A company that made an overture to acquire BuzzFeed for $650 million in 2013, which Peretti rejected.

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What they’re saying

“I'm going back to founder mode, and we're building like a start-up again. There is more risk to that, and investors should be aware of the risk.”

— Jonah Peretti, Founder, BuzzFeed

“A company like Walt Disney used to make a lot of money from distributing and creating content, but now a higher percentage of their revenue is coming from parks. Which kind of fits the taste and culture and the shared experience.”

— Jonah Peretti, Founder, BuzzFeed

“I think nostalgia is a dangerous emotion, and getting stuck in the past and clinging to the past is a bad strategy.”

— Jonah Peretti, Founder, BuzzFeed

What’s next

Peretti said BuzzFeed could shore up its balance sheet through the sale of some of its businesses, such as Tasty, HuffPost, and BuzzFeed Studios. The company could also pursue a joint venture partner for some of its businesses or raise more money specifically for the AI-focused Branch Office subsidiary.

The takeaway

Peretti's pivot to AI represents a high-risk, high-reward strategy to transform BuzzFeed's business model and find new revenue streams beyond the volatile digital advertising market. If successful, Branch Office could become a 'juggernaut' in the emerging AI content and community space, but the company faces significant financial challenges in the near-term as it seeks to execute this ambitious turnaround plan.