Meta's AI spending: a calculated gamble?
Mark Zuckerberg has signaled that his company's $72 billion investment in AI infrastructure might not be used to create the next generation of artificial intelligence after all. The news comes as investors express growing concerns about Meta's stock, which took an 8% hit on Wednesday.
In an earnings call, Zuckerberg suggested that if a breakthrough in AI superintelligence doesn't happen soon, the company will use its resources to boost its core business – primarily social media ad-supported platforms. "If it takes longer, then we'll use the extra compute to accelerate our core business," he said.
Meta's "core business" is essentially an ad-driven social media empire, which generates nearly all of its revenue. While AI has been integrated into Meta's platforms, revolutionizing them hasn't quite materialized – yet. The company's primary focus remains on monetizing user engagement through advertising, rather than transforming the fundamental nature of its apps.
The billions spent on data centers, AI experts, and a GPU company might seem excessive if the goal is solely to "accelerate" Facebook and Instagram. Zuckerberg assured investors that this approach will pay off in the long run, with the potential for a "generational paradigm shift" in various large opportunities.
However, even if Meta's AI ambitions remain unchanged, the company has committed to increasing its spending next year. Investors may be wondering if this strategy is truly justifiable, especially given the uncertainty surrounding the development of superintelligence.
Mark Zuckerberg has signaled that his company's $72 billion investment in AI infrastructure might not be used to create the next generation of artificial intelligence after all. The news comes as investors express growing concerns about Meta's stock, which took an 8% hit on Wednesday.
In an earnings call, Zuckerberg suggested that if a breakthrough in AI superintelligence doesn't happen soon, the company will use its resources to boost its core business – primarily social media ad-supported platforms. "If it takes longer, then we'll use the extra compute to accelerate our core business," he said.
Meta's "core business" is essentially an ad-driven social media empire, which generates nearly all of its revenue. While AI has been integrated into Meta's platforms, revolutionizing them hasn't quite materialized – yet. The company's primary focus remains on monetizing user engagement through advertising, rather than transforming the fundamental nature of its apps.
The billions spent on data centers, AI experts, and a GPU company might seem excessive if the goal is solely to "accelerate" Facebook and Instagram. Zuckerberg assured investors that this approach will pay off in the long run, with the potential for a "generational paradigm shift" in various large opportunities.
However, even if Meta's AI ambitions remain unchanged, the company has committed to increasing its spending next year. Investors may be wondering if this strategy is truly justifiable, especially given the uncertainty surrounding the development of superintelligence.
Mark Zuckerberg says they'll use their resources on social media ads instead, which is still a solid business but... isn't that just playing catch-up? 
Can't he see how the landscape is shifting with all these other tech giants diving into AI?
. Can we get a clearer roadmap on what Meta wants to achieve with AI before they sink even more cash into it? 
He's basically saying "Hey, we're not really sure if AI superintelligence will happen, so let's use our resources to keep Facebook and Instagram ad-supported instead". That just seems like a bunch of dodgy math to me 
. This approach just seems too cautious to me.
. Now, it seems like they're just trying to play catch-up and boost their ad revenue 
I'm not saying it's not important, but what if it doesn't happen? What then? They'll just use the money to make even more ads 
. Zuckerberg says they'll use it to boost core business but idk how that relates to ai at all 
. social media ad revenue is where the $$$ is, so i guess its only logical. but if AI doesnt happen then whats the point? 
. Maybe they know somethin' we don't? Only time'll tell, I guess 
. I mean, who invests $72 billion in AI without guaranteeing a tangible return? It's either going to pay off in a landslide or leave Meta in the red, and that's not exactly the kind of transparency you want from your social media mogul 
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Zuckerberg wants us to believe that this is a calculated gamble, but what's the real risk here? We're talking about vast amounts of money being poured into a speculative tech area that might not even pan out. And if it doesn't, we get to enjoy the "generational paradigm shift"... in our ad bills 
He's basically saying that if it doesn't happen soon, they'll focus on making more money from Facebook and Instagram. But at the same time, they're still gonna keep throwing cash at AI... does that make sense to anyone? 
Still, I guess it's better than sitting on your hands... or whatever the opposite of that is. 
like what's the hold up? we've been hearing about the future of AI for years and it still hasn't materialized... meanwhile, facebook is just raking in the ad dollars 
... meanwhile, their core business is solid