FACEBOOK SPENDS $10M TO BUY CHAI LABS ?

Facebook has spent $10 million from its coffers to buy Chai Labs, a web publishing startup. This move appears to be one for the acquisition of talent instead of any specific products or services that the company provides. Officially, Chai Labs assists other companies develop websites that are both well targeted towards their own niche and search engine friendly.

Chai Labs was started by Gokul Rajaram, a former Google Adsense executive and it’s advisory board and investor list reads like a who’s who, consisting of the likes of Marc Andreessen, one of the cofounders of Netscape Communications, Joe Kraus of Google Ventures’ and Reid Hoffman, the LinkedIn chairman. Even its client list appears strong with Associated Content, NBC Local and the Travel Ad Network listed as some of their clients.

It’s not really clear how Facebook plans to use the information gained from the acquistion of Chai Labs, a company involved in “structured content extraction” as well as semantic search, but there’s 10 million good reasons why Facebook will find a way to benefit from this deal.
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