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Mark Zuckerberg thinks AI is Meta's future. Not everyone is convinced.

Apr 25, 2024 - businessinsider.com
Meta, formerly Facebook, plans to increase its spending on AI research, despite investor concerns about the costs. CEO Mark Zuckerberg has expressed his optimism about AI, particularly following the release of Meta's Llama 3 model, and plans to invest significantly more in the coming years. The company's estimated capital expenses are expected to be about $5 billion more than the original estimate of between $35 billion and $40 billion, largely due to AI investments. However, this announcement led to a drop in Meta shares in after-hours trading.

Despite the success of some of Meta's AI products, including Llama 3, investors are becoming wary of the company's high spending without clear revenue gains. This is not the first time Zuckerberg's enthusiasm for a new technology has led to significant spending, with the company's heavy investment in the metaverse also causing concern among investors. Despite these concerns, Zuckerberg remains optimistic about the potential of AI, warning investors that building leading AI will be a large undertaking that will likely take several years.

Key takeaways:

  • Mark Zuckerberg's company, Meta, plans to increase spending on AI research, despite investors' concerns about the costs.
  • Meta shares fell as much as 15% in after-hours trading following the announcement of the company's AI spending plans.
  • Despite the success of Meta's AI products, including Llama 3, the company is not selling any version of its newest AI model, which is largely open source.
  • Investors may be wary of Zuckerberg's tendency to invest heavily in new technologies, as seen with Meta's heavy metaverse spending and subsequent stock slide.
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