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We have acquired SkyPhrase. The team of four has built amazing natural language processing technology and we’re excited to welcome them to our Yahoo Labs team in New York. Yahoo Acquires Natural Language Tech Company, SkyPhrase [yahoolabs.tumblr.com]
We are excited to join Yahoo Labs to continue to work on our shared vision of making computers deeply understand people's natural language and intentions.
I suspect mobile is the target with this acquisition, enabling better voice search, from whatever index is being used.