Instagram Co-Founders' AI News App Artifact: Is it Really Closing Down or Just Evolving?

Artifact, the popular AI-driven news app created by Instagram's co-founders Kevin Systrom and Mike Krieger, might not cease operations as previously announced. In January, the founders revealed plans to wind down the award-winning app, citing that the market opportunity wasn’t “big enough to justify continued investment.” Despite an expected shutdown date of February 2024, the app remains operational weeks later, surprising many users.

This persistence is intentional.

Systrom shared that he and Krieger are actively working to keep Artifact running, without losing sight of future possibilities for the app—a hopeful message for its dedicated users. “It requires much less to operate than we initially thought,” Systrom explained. He noted that it’s just the two of them managing Artifact at the moment. "It might still eventually close, but we are assessing all potential options for its future," he added. (Could a potential acquisition be in the works?)

Artifact generated significant buzz at its launch not only for being the first substantial venture from Instagram’s founders but also for its innovative use of AI. The app personalized news for users by curating content from a range of trusted sources and offered unique features such as customizable summary styles (like “Gen Z” or “Explain Like I’m Five”). Additionally, it could rephrase clickbait headlines for improved clarity.

The “Gen Z summary” feature is particularly missed by users as they share their experiences online.

Interest in AI-assisted news summarization has surged following Artifact's announcement of its potential closure. For instance, the browser startup Arc recently introduced an AI “pinch to summarize” feature ahead of a $50 million fundraising round. Other emerging platforms, such as the RSS reader Feeeed and AI news readers Bulletin and Particle—developed by ex-Twitter engineers, including former Senior Director of Product Management Sara Beykpour—are also enhancing the news-reading experience with AI. Notably, Particle secured $4.4 million in seed funding, signifying growing investor interest in this sector.

Despite its uncertain future, Systrom and Krieger have self-funded Artifact to the tune of “single-digit millions,” allowing them the flexibility to operate the app in the short term. While the app has removed its social features, such as commenting and posting, it continues to provide readers with valuable news aggregation and AI summarization capabilities in its current version.

Artifact has the potential to compete with platforms like X and Threads, particularly with its new Posts feature drawing attention.