Whatnot, a leading livestream shopping app, has acquired machine learning company Shaped to power enhanced real-time recommendation and search capabilities, supporting its rapid expansion into new product categories and growing user base.
- Shaped’s AI will boost Whatnot’s real-time recommendation engine performance
- Whatnot has expanded into over 80 product categories with millions of buyers
- The acquisition aligns with industry trends integrating AI in resale marketplaces
What happened
Whatnot announced the acquisition of Shaped, an AI startup specializing in real-time machine learning for recommendations and search. This deal is intended to enhance Whatnot’s capability to personalize and recommend products instantly during live shopping events, which is challenging due to constantly changing inventories and active auctions.
Shaped’s founder and CEO Tullie Murrell, along with a team of engineers and AI researchers, will join Whatnot. Murrell will lead Whatnot's new Applied AI Research group, continuing the integration and advancement of Shaped’s technology within Whatnot’s platform.
Why it matters
Live commerce differs from traditional e-commerce because product availability and buyer interest shift rapidly during ongoing auctions. Whatnot’s ability to process and analyze vast data from 500,000 hours of live video and millions of interactions weekly is crucial to providing relevant recommendations that capitalize on this dynamic environment.
By integrating Shaped’s AI, Whatnot aims to reduce recommendation latency from minutes closer to real time. This advancement is vital for maintaining engagement, improving discovery, and supporting growth as Whatnot expands its marketplace beyond collectibles into diverse categories like art, golf, and vinyl.
What to watch next
Monitor How Whatnot leverages Shaped’s AI capabilities to enhance user experience and increase sales conversion rates as it rolls out new product categories in the rapidly evolving live commerce space. The company recently surpassed one billion orders and boasts over 20 million buyers, highlighting its scale and growth potential.
Industry observers should also watch for further AI adoption in resale marketplaces, as competitors like eBay and Poshmark also invest heavily in artificial intelligence to optimize personalization and discovery, intensifying competition in this sector.