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Whatnot Just Bought an AI Company: Its Live Auctions Will Now Know What You Want Before You Do

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Whatnot Just Bought an AI Company: Its Live Auctions Will Now Know What You Want Before You Do

The live-shopping app Whatnot has bought a small artificial-intelligence company called Shaped, one that specialises in systems that recommend products in real time. The price was not disclosed, but the goal is clear: the platform wants algorithms whispering to it what to show you, at the exact moment your attention is at its weakest - while you are watching a live auction.

For anyone hearing about this for the first time: Whatnot is a marketplace where sellers run live streams and sell everything from artwork and golf gear to vinyl records, in auctions that last anywhere from a few minutes to a few hours. Unlike classic online shops where the catalogue sits still, here the offer changes every second. That is precisely the technical problem the company wants to crack - how to find you the „right" product when the stock, the auction and your own desire are all shifting at the same time.

„Live commerce is a uniquely hard problem for recommendations. Inventory changes every second, streams start and end constantly, and the buyer's intent shifts in the middle of the stream itself," says Emanuel Fuentes, vice-president for data and artificial intelligence at Whatnot. The company claims its systems process over 500,000 hours of live video and millions of interactions every week - and it uses all of it to steer you towards the next click.

It is worth translating what this means into plain language. Fuentes says that over the past six years they have cut the lag on recommendations from about a day to a few minutes. With the new technology, the aim is to get even closer to real time. In other words - the system wants to react to your desire before you have become aware of it yourself. That is the promise. The question rarely asked is whether the buyer actually gains anything from that speed, or just spends faster.

Behind the deal sits a familiar pattern in the tech world. Shaped's founder, Tulli Murel, along with nearly a dozen engineers and researchers, is moving to Whatnot and will lead a new applied-AI group. Murel previously worked at Meta - yet another path that runs from the big players to a startup and back into the corporate embrace. Small firms get built, prove themselves, and then get swallowed by the bigger ones. Technology rarely stays independent.

Whatnot is coming from a position of strength. Founded in 2019, it raised 225 million dollars last year and reached an estimated value of over 11 billion dollars, while its sellers recently passed a billion orders. The company is not alone in the race - giants like eBay and Poshmark are also rushing to shove artificial intelligence into every corner of their platforms. Shopping out of habit has become a field where algorithms fight for every second of your attention, and you, most of the time, do not even know the battle is on.