Zuckerberg doubles down on AI spending, Meta shares tumble ...
Shares fell when Wall Street opened yesterday morning, wiping about US$190 billion off of the value of the company. On a conference call earlier this week, Zuckerberg, Meta’s founder and chief executive said that spending on AI would have to grow “meaningfully” before the company could make much revenue from new AI products.
Commitment to AI Growth
Meta has grown its income to more than $12 billion on $36.5 billion in revenue in the last quarter. Despite the expected slowdown in growth, the company remains committed to spending more on AI and the metaverse. This commitment is part of a larger strategy to stay competitive in the fast-moving AI race alongside industry giants like OpenAI, Microsoft, and Google.
Focus on Chatbots and AI Models
Meta has focused on introducing chatbots to its social media apps to enhance engagement. Recently, the company released a new version of the AI model behind these chatbots, known as Llama 3. The Meta AI assistant, which has been tried by “tens of millions of people,” shows promise for monetization despite being currently free to use.
Monetization Strategies for AI
Zuckerberg highlighted several potential monetization strategies for Meta's AI efforts, including scaling business messaging, introducing ads or paid content into AI interactions, and offering paid options for using larger AI models. Additionally, AI technology is already enhancing app engagement, leading to increased ad visibility and better-targeted ads for users.
