Meta Platforms, the corporate parent of Facebook, Instagram, Whatsapp, and Threads, is focusing more on artificial intelligence (AI) development, according to CEO Mark Zuckerberg. During the first-quarter earnings call, Zuckerberg mentioned that the company would be investing significantly more to support and grow its AI efforts. However, he also acknowledged that generating substantial revenue from these AI products will take some time.
Some of Meta's recent AI initiatives include Llama 3 and the Meta AI assistant, which utilizes a large language model. For 2024, the company has increased its prediction for capital expenditures to $35 billion to $40 billion. Zuckerberg noted that Meta's shares have experienced volatility in the past while investing in new products like Reels and Stories that are not yet monetized.
Zuckerberg emphasized that building leading AI models will be a long-term investment and may take several years to fully scale. He mentioned plans to improve cost efficiency through initiatives like leveraging the open-source community and developing custom chips. Despite the challenges, Zuckerberg expressed confidence in Meta's ability to build the world's leading AI models and services.
In the first quarter, Meta reported $36.46 billion in revenue, a 27% increase from the same period last year, with net income rising from $5.91 billion to $12.37 billion. Overall, Meta's focus on AI development and its long-term investment strategy are expected to drive growth and innovation in the coming years.