Ziff Davis & Xyla Partner to Drive Innovation Using Artificial Intelligence; Initial Focus in Healthcare Vertical

Ziff Davis, Inc. (Nasdaq: ZD), a vertically focused digital media and internet company, and Xyla, Inc., an artificial intelligence (AI) company at the forefront of the development of retrieval-augmented large language model AI systems for accuracy-critical domains, have entered into a strategic partnership focused on AI enablement across digital media, software, and information services.

The first initiative in the partnership will be to integrate Xyla’s OpenEvidence technology into Ziff Davis’ Everyday Health Group with the mission of turning medical information into medical knowledge for healthcare professionals. OpenEvidence was the first medical AI to score above 90% on the US Medical Licensing Examination. With OpenEvidence, healthcare professionals can access and analyze vast amounts of medical information, published research, and clinical trial data, assisting them in making informed clinical decisions to improve patient outcomes. OpenEvidence technology will drive enhanced and personalized engagements with healthcare professionals as part of Everyday Health Group’s physician-focused MedPageToday, a trusted digital source for clinical news coverage across medical specialties.

The Ziff Davis-Xyla partnership has two key elements:

1. Xyla Investment. Ziff Davis is purchasing $25 million of Xyla equity for a minority ownership stake in the company. A portion of the investment will be funded with cash and a portion of the investment will be funded with Ziff Davis common stock with Xyla leadership exchanging a portion of their Xyla shares for Ziff Davis common stock.
2. Long-Term Collaboration Agreement. Ziff Davis and Xyla are entering into a long-term collaboration agreement that establishes a framework for the parties to rapidly define, develop, and deploy AI at discrete brands and businesses within the Ziff Davis portfolio.

Through this partnership, Xyla will gain access to large audiences and data sets in high-value, domain focused categories across the Ziff Davis portfolio, as well as monetization capabilities. Ziff Davis, in turn, will gain access to Xyla’s AI technology and expertise in retrieval-augmented large language models that are capable of generating precise and authoritative content. Together, the companies will collaborate to transform user experiences and products across Ziff Davis’ core verticals.

“As we have studied potential AI use cases, we are energized by the countless opportunities to create value and drive innovation and transformation across our portfolio,” said Vivek Shah, Chief Executive Officer of Ziff Davis. “We have been actively searching for the right partner to help us accelerate our efforts in AI, and I am thrilled to be partnering with Xyla and Dr. Daniel Nadler, one of the earliest entrepreneurial innovators in AI.”

“I founded Xyla to bridge the application of large language models to domains where accuracy and precision are paramount,” said Dr. Daniel Nadler, Founder and CEO of Xyla. “Ziff Davis’ focus on producing high-quality, human fact-checked reference information across multiple verticals—including in healthcare, where they are a top internet health publisher—along with its breadth of audience reach make it an ideal partner for us. We have assembled a world-class team of experts in AI, and machine learning broadly, who are excited to partner with Ziff Davis.”

About Ziff Davis

Ziff Davis (NASDAQ: ZD) is a vertically focused digital media and internet company whose portfolio includes leading brands in technology, shopping, gaming and entertainment, connectivity, health, cybersecurity, and martech. For more information, visit www.ziffdavis.com.

About Xyla

Xyla is working on aligning and grounding large language models for accuracy-critical domains so that their revolutionary power can reach the accuracy-critical sectors of modern knowledge work and boost productivity even in places where the facts matter most. For more information, visit www.xyla.com.

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The Ziff Davis Stock at the time of publication of the news with a raise of +3,13 % to 64,00USD on Tradegate stock exchange (01. August 2023, 22:26 Uhr).