The seed-to-core model allows for broader geographic coverage with lower upfront investment, especially when compared to competitors like Axios Local, which has expanded to 34 markets and 2 million subscribers but with a higher cost basis.
The approach crystallizes some of the most pressing questions surrounding the use of AI, such as whether it can produce a compelling product with little human oversight. And, more pointedly, if 6AM can turn a profit in these markets without a staff, will it still commit to hiring?
“The 6AM pitch was always two people in every market,” said one media analyst familiar with their model. “This is either a hack to get there eventually, or a signal that they think AI can do the job.”
The goal of the model is to produce core markets staffed by humans, according to Heafy.
The path to profitability
The acquisition comes as 6AM City reports solid financial growth.
The company is generating more than $1 million in monthly revenue and expects to reach profitability by the end of the year, according to Heafy. It has around 100 employees.
It has raised roughly $21 million in capital to date, including a Series A round led by TV broadcaster Tegna last February that brought in around $10 million.
The company generates the vast majority of its revenue from local and national advertising.
It plans to monetize its seed markets in three ways: a self-serve ad platform that allows small brands to advertise limited campaigns; a proprietary affiliate program, called The Buy, which promotes products; and national buys, which are sold on a CPM rate and thus grow more lucrative as total impressions grow.
“Anything related to advertising is handled by humans,” Heafy said. “This is about process efficiency on the content creation side—allowing our editorial and revenue teams to focus on high-impact community-driven work.”
