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Whatnot acquires Shaped to power real-time live shopping recommendations
Whatnot has acquired machine learning company Shaped to enhance its real-time shopping recommendations. This acquisition aims to bolster personalization and discovery as Whatnot expands its product categories and addresses challenges in live commerce, where inventory and buyer intent fluctuate rapidly. Shaped's technology will improve recommendation speed and accuracy, making live shopping experiences more efficient.
Key points
- Whatnot announced the acquisition of Shaped to improve live shopping recommendations.
- The acquisition enhances Whatnot's discovery and personalization capabilities in a rapidly changing marketplace.
- Shaped specializes in real-time recommendation systems, critical for addressing fast-changing inventory and buyer intents.
- Emmanuel Fuentes (Whatnot's VP of Data and AI) emphasized the need for speed in recommendations, as live commerce presents unique challenges.
- The recommendation latency has been reduced from a day to minutes, and the integration of Shaped will further approach real-time recommendations.
- Shaped's AI technology combines customer data with language models for better discovery experiences.
- Shaped's founder, Tullie Murrell, will lead Whatnot's new Applied AI Research group post-acquisition.
Why it matters
- The acquisition aligns with broader trends in e-commerce, where companies like eBay and Poshmark are integrating AI to enhance user experience.
- Whatnot's growth reflects the increasing popularity of live commerce, a market trend expected to expand significantly by 2025.
- The deal indicates the accelerating pace of AI development in e-commerce, which supports the growing demand for personalized shopping experiences.
Whatnot's acquisition of Shaped signifies a strategic move to leverage AI for enhancing live shopping experiences, reflecting a broader trend in the e-commerce sector focused on personalization and real-time responsiveness.