Twitter acquires U.K. tech firm Magic Pony

Twitter has acquired Magic Pony, a London-based firm that has developed technology to improve video shot on smartphones and shared online.

The company specializes in machine learning, the ability of computers to use built-in artificial intelligence to improve output. In the case of Magic Pony, that involves improved processing of video so that clips and live feeds look better shared on Twitter.

Magic Pony had developed "novel machine learning techniques for visual processing," said Twitter CEO Jack Dorsey in a Twitter blog post announcing the acquisition Monday. "Machine learning is increasingly at the core of everything we build at Twitter. It’s powering much of the work we’re doing to make it easier to create, share, and discover the very best content so that every time you open Twitter you’re immersed in the most relevant news, stories, and events for you."

In an announcement on its web site, Magic Pony said, "Today, we're excited to announce that we're joining forces with Twitter to use our technology to improve the visual experiences that are delivered across their apps. ... We've barely scratched the surface of what we think is possible in this area and are excited to see what the future holds."

The deal, terms of which were not announced, increases Twitter's commitment to AI and so-called deep learning, which allows computers to deliver faster, more relevant results. Other recent AI-related acquisitions: New York image search firm Madbits in 2014, and last year, Cambridge, Mass.-based object recognition start-up Whetlab.

"We are continuing to build strength into our deep learning teams with world-class talent to help Twitter be the best place to see what’s happening and why it matters, first," Dorsey said. "We value deep learning research to help make our world better, and we will keep doing our part to share our work and learnings with the community."

Twitter (TWTR) shares were up 0.8% in early trading Monday to $16.23.