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Metaplatforms is increasingly pursuing artificial intelligence, and CEO Mark Zuckerberg says it will take some time before the company generates significant revenue from it.
Zuckerberg said during a first-quarter earnings call Wednesday evening that the company, the parent company of Facebook, Instagram, Whatsapp, and Threads, will invest “significantly additional” to support and grow its AI development efforts.
“As we grow our capital and energy spending on AI, we remain focused on running the rest of our company efficiently, but the reality is that many of our existing resources Even if we shift to focus on AI, we’re still going to see increased investment.”We need meaningful action before we can see much revenue from some of these products,” he said, listening to the conference call. told analysts and investors.
Meta CEO Mark Zuckerberg said the company will make “significant additional” investments to grow its AI development efforts. (Dado Luvitch/Illustration/Reuters Photo)
Meta’s recent AI efforts include Llama 3 and its Meta AI assistant, which uses large-scale language models.
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Meta on Wednesday revised its 2024 capital spending forecast to $40 billion from $35 billion. The company also predicted that capital expenditures would increase further next year, but did not provide a specific range.
Zuckerberg noted that Meta stock has experienced “huge swings” in the past when it was “investing in new product expansions, but not yet monetizing them,” such as Reels and Stories.
Meta CEO Mark Zuckerberg said the tech giant’s stock price was at a time when it was “investing in expanding new products, but we weren’t yet profitable,” like Reels and Stories. He noted that the country had experienced “big changes” in the past. (Kevin Dietch/Getty Images)
“I also expect it will take several years of investment cycles before we can really deploy things like meta AI and business AI into profitable services that I expect to see,” he said. .
META deploys upgraded AI assistant to Facebook, Instagram and WHATSAPP
“So far, the investment in building these new scale experiences in our apps has been a very good long-term investment for us and for the investors who have stuck with us, and again the initial signs are very positive. “But building cutting-edge AI is also important. This is a larger effort than any other experience we’ve added to the app, and it could take several years.” he continued.
Meta’s CEO mentioned several ways the company plans to improve cost efficiency in its AI expansion efforts, including open source communities and developing its own chips.
Meta’s CEO mentioned several ways the company plans to improve cost efficiency in its AI expansion efforts, including through the open source community and developing its own chips. (Photo illustration: Onur Dogman/SOPA Images/LightRocket via / Getty Images)
He said the feats the Meta team has achieved so far with its AI products are “another important demonstration that we have the people, data, and ability to scale the infrastructure to build world-leading AI models and services.” He said he considers it a “milestone.”
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The company’s revenue for the first quarter was $36.46 billion, an increase of 27% compared to the same period in 2023. Meanwhile, net income increased from $5.91 billion to $12.37 billion.
