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Facebook buys London-based AI company

(Image credit: Image Credit: PHOTOCREO Michal Bednarek / Shutterstock)

The startup acquisition war continues, and it's Facebook that's thrown the latest punch. According to media reports, the social media giant has acquired, in early July, a London-based Artificial Intelligence (AI) startup.

The startup's name is Bloomsbury, and it seems to have been acquired for a price of somewhere between $23 million and $30 million.

Bloomsbury is a startup that develops natural language processing (NLP) technology, allowing machines to read documents and answer questions based on what they'd learned from them.

The media are saying Facebook is going to use Bloomsbury to tackle fake news and other isuses it has with content. It has an API called Cape, that lets devs add Q&A features to websites and other documents. So Cape can be used to quickly find things within large documents. The media speculates Facebook might also use it to improve its search and knowledge-base functionality.  

The purchase will be made with both cash and stock change hands. The startup's investors will receive some $5.5 million, while Bloomsbury's founding team will split the rest $17.5 million, paid in restructed Facebook stock.

According to Tech Crunch, the deal has been confirmed from multiple sources. Yet, Facebook itself is quiet on the matter.

Image Credit: PHOTOCREO Michal Bednarek / Shutterstock

Sead Fadilpašić

Sead is a freelance journalist with more than 15 years of experience in writing various types of content, from blogs, whitepapers, and reviews to ebooks, and many more, across sites including Al Jazeera Balkans, TechRadar Pro, IT Pro Portal, and CryptoNews.