Artifact, founded by Instagram’s co-founders, is closing operations. Initially conceived as a news app, it transitioned into a curation platform, allowing users to discover and share news. However, the startup has decided to wind down due to a market that didn’t justify continued investment.
Co-founder Kevin Systrom acknowledges the challenge startups face in recognizing market realities. The decision to make tough calls early is seen as beneficial for all parties involved. Systrom emphasizes the opportunity cost of time spent on ventures that don’t reach a broader audience.
To assist users during the transition, Artifact will gradually shut down features, starting with comments and posts. Existing posts will remain visible, and core news capabilities will continue until the end of February.
The shutdown comes amid increased competition in the Twitter rival landscape and a slowdown in the usage of news aggregators. Changes in how users find news, driven by AI, are reshaping the industry. Despite Artifact’s closure, Systrom believes news and information remain critical areas for startup investment.
Artifact’s journey underscores the challenges startups face in defining their identity, potentially leading to missed opportunities. Systrom remains optimistic about the future, emphasizing the limitless opportunities presented by artificial intelligence in today’s dynamic technological landscape.
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