Whatnot, the prominent livestream shopping application, announced on Wednesday its acquisition of Shaped, a machine learning firm renowned for its expertise in real-time recommendation and search systems. This strategic acquisition aims to significantly enhance Whatnot's discovery and personalization functionalities as the platform continues its rapid expansion across diverse product categories and growing base of millions of buyers.
The company stated that this acquisition underscores Whatnot's ongoing commitment to artificial intelligence, particularly in addressing one of live commerce's most significant hurdles: efficiently connecting shoppers with suitable products amidst the dynamic, real-time fluctuations of inventory, live auctions, and shifting buyer demand.
Distinct from conventional e-commerce platforms, which typically feature stable product catalogs, Whatnot's marketplace is characterized by its constant evolution, where live auctions can conclude in mere minutes or extend for several hours.
Emmanuel Fuentes, VP, Data and AI at Whatnot, emphasized the impact to TechCrunch, stating, "By combining Shaped’s technology with Whatnot’s existing systems, we can make recommendations faster, more responsive, and more personalized." He further elaborated on the criticality of this speed, noting, "That speed matters because live commerce is a uniquely hard recommendation problem. Inventory changes by the second, shows start and end continuously, and buyer intent shifts throughout a show."
Fuentes revealed that Whatnot has dedicated the past six years to refining the speed of its recommendation engine, successfully decreasing recommendation latency from approximately a full day to mere minutes. The integration of Shaped’s cutting-edge technology is anticipated to propel these recommendations even nearer to true real-time delivery. The company highlighted that its systems currently process over 500,000 hours of live video and millions of real-time interactions each week, leveraging this extensive data to continuously refine and enhance its recommendations.
Shaped was established with the mission of empowering businesses to construct advanced AI-powered recommendation systems. Its proprietary technology masterfully integrates existing customer data with large language models and machine learning to deliver profoundly personalized search and discovery experiences. Notable clients on its roster included industry players like Outdoorsy and QVC.
Pursuant to the acquisition, Shaped’s founder and CEO, Tullie Murrell, will join Whatnot, bringing with him nearly a dozen engineers and AI researchers. Murrell is slated to head Whatnot’s newly established Applied AI Research group. It's worth noting that Murrell previously held a position at Meta prior to founding Shaped.
This acquisition coincides with a period of substantial growth for Whatnot. The company, which launched in 2019, recently disclosed that its sellers have collectively surpassed one billion orders. Earlier this year, Whatnot successfully secured $225 million in Series F funding, propelling its valuation to over $11 billion, following the addition of 20 million buyers in the past year alone.
Furthermore, Whatnot has considerably expanded its marketplace offerings, introducing over 35 new categories last year, encompassing diverse interests such as art, golf, and vinyl. The platform plans to roll out more than 45 additional categories during the first half of 2025, with new subcategories consistently launching each month.
This strategic move also aligns with a broader industry trend, as leading resale platforms, including eBay and Poshmark, are actively engaged in integrating artificial intelligence across their respective ecosystems.
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