Meta's new AI challenges OpenAI and Google's leadership in the Artificial Intelligence (AI) sector
Meta Platforms, previously known as Facebook, is venturing into the development of a standalone artificial intelligence application that will rival industry giants such as OpenAI and Google. This new endeavor, as reported by CNBC, is set to launch in the second quarter of this year and is expected to make a significant impact in the AI landscape.
The Meta AI can currently be accessed through web browsers and various apps owned by the company, including Facebook, Instagram, WhatsApp, and Messenger. Despite not providing official comments on the upcoming application, Meta's CEO Mark Zuckerberg expressed during an earnings call in January that Meta AI could become one of the company's most influential products. With a current user base of around 700 million monthly active users, Zuckerberg aims to expand this number to reach one billion users by the end of the year.
Investment in AI
Meta has been heavily investing in artificial intelligence, with a significant spend of $39 billion in 2024. This year, the projected capital expenditure for AI has surged to a range of $60 to $65 billion, underlining Meta's commitment to advancing AI technologies.
Subscription Model and Market Performance
In addition to the standalone AI app, Meta is exploring the possibility of introducing a subscription model, following the footsteps of competitors like OpenAI and Elon Musk's xAI. Other players in the industry, such as ChatGPT, Claude, Gemini, and Copilot, already offer paid versions to unlock premium features for users.
On the financial front, Meta's shares experienced a slight uptick of less than 1% in extended trading following a 2% decline in regular trading. The company's stock has seen a cumulative uptrend of approximately 12% since the beginning of the year till the last trading session.
As Meta ventures into the realm of AI with its upcoming application, the tech industry is keeping a close eye on how this move will challenge the established leadership of OpenAI and Google in the artificial intelligence sector.
