Yahoo is establishing a new AI research group, led by Eric Feng, co-founder and CEO of the blockchain technology startup Cymbal. This initiative includes Yahoo’s acquisition of Cymbal’s team.
Cymbal, founded in 2022 by Feng, James Jerlecki, and Nick Chang, aimed to simplify blockchain data by creating a “human-readable” blockchain explorer. The startup cataloged data across various blockchain networks, including Ethereum, Solana, and Base, and utilized AI to summarize and analyze this data in real-time. Cymbal’s AI could determine wallet portfolio rankings, identify NFT purchase volumes on specific days, find the largest sales in a collection, and list top purchasers of a chain and their other token acquisitions.
Feng articulated Cymbal’s mission in 2023, stating, “The more you use Cymbal and our data, the more you ask us to explain the blockchain to you, the better our AI system will be at generating useful and intelligent insights to make web3 understandable.” Cymbal integrated individuals from major consumer technology companies such as Meta, Microsoft, Hulu, and Flipboard, leveraging their expertise to bridge web3 technology to a broader audience.
Cymbal secured at least $18.5 million in venture funding from investors including Patron, GV, Acrew, First Round Capital, Eniac, Sixth Man Ventures, Solana Ventures, Coinbase Ventures, CAA Connect, and UTA Ventures. The financial terms of Yahoo’s acquisition of Cymbal’s team were not disclosed. Following the acquisition, Cymbal’s website has been significantly reduced to a basic landing page.
As the head of Yahoo’s new Research Group, Feng is tasked with developing “intuitive, intelligent, and forward-looking products” to enhance Yahoo’s competitiveness in the AI era. While it remains uncertain if Cymbal’s technology will be directly integrated, there is potential for divisions like Yahoo Finance to utilize Cymbal AI for deeper market insights, including cryptocurrency markets. This move is also seen as crucial for Yahoo to navigate the evolving search market, influenced by developments like Google’s AI Overview and AI-powered browsers from Perplexity and The Browser Company, aiming to maintain its market momentum through the adoption of AI and other emerging technologies.
