Mark Zuckerberg explains why he's happy to keep spending on AI
Meta will continue to spend big on artificial intelligence, executives said in an earnings call. The company outperformed Q3 expectations with Mark Zuckerberg citing AI progress as a factor.
AI Investments
Meta spent the year pouring money into AI research and development and doesn't expect to stop soon. Mark Zuckerberg is staying the course with Meta's heavy AI spending.
Financial Performance
The company reported its third-quarter earnings on Wednesday, outlining how its $40.59 billion quarterly revenue beat expectations of $40.25 billion. Zuckerberg attributed the "good quarter" to AI progress across Meta's apps and business.
Future Investments
The company's AI investments continue to require a "significant acceleration" in infrastructure expense growth.
Capital Expenditures
Meta said it expects its capital expenditures for the year to be in the range of $38 billion to $40 billion. The company is betting big on AI, training its own models and integrating the technology into consumer products across its platforms.
Company Focus
During the call, Zuckerberg celebrated the "rapid adoption" of the company's chatbot Meta AI and Llama AI models.
Opportunities and Challenges
Emarketer principal analyst Jasmine Enberg said Meta's big AI spending shouldn't spook investors, but the company must prove it can continue to cover its AI costs even as they trend upward. Meta believes AI can be used to streamline company processes, such as coding and content moderation.
International Expansion
Meta is bringing its AI chatbot Meta AI to several countries, with plans for further rollouts. Meta's AI approach extends beyond delivering products like Meta AI and Meta Ray-Bans.
Further Developments
Meta is partnering with various companies to advance research into AI applications. Google Maps is also enhancing its features using generative AI models.
Overall, Mark Zuckerberg's commitment to investing in AI remains strong, with Meta's focus on innovation and growth in the AI space.
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