Marco Zuckerberg outlined three strategies for Meta Platform Inc. HALF monetize its large investments in artificial intelligence (AI.)
What happened: Zuckerberg, during the March 2024 quarter earnings call, expressed his confidence in Meta’s AI capabilities, particularly with the launch of Blade 3the company’s latest AI model.
He said Meta will “invest much more in the coming years to build even more advanced models and large-scale AI services in the world.”
Despite the substantial costs associated with this ambition, Meta expects to increase its capital expenditures this year by $35 billion to $40 billion, mostly for investments in artificial intelligence. This announcement resulted in shares dropping 16% in after-hours trading.
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Zuckerberg, however, is confident that Meta’s investments in artificial intelligence will yield significant profits in the future. He outlined three specific ways in which artificial intelligence could become a “huge business” for Meta.
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Zuckerberg’s 3-Step Plan to Monetize AI Investments:
1. Charge companies for using generative AI tools
The first method involves companies paying Meta for generative AI tools, such as services that support automated interactions with users and customers. According to Zuckerberg, this could become a reality within the next five years.
2. Advertising
The second approach is to integrate ads or paid content into AI interactions. This is in line with Meta’s core business of selling digital advertising.
3. Monetization of large AI models
The third potential revenue stream is paying for access to Meta’s increasingly large AI models.
Because matter: Zuckerberg’s announcement comes after Meta announced plans to significantly increase capital expenditures for AI investments.
This move raised concerns among investors, given the company’s history of overspending on new technologies, such as the Metaverse.
These strategies are in line with Meta’s recent initiatives in the field of artificial intelligence, including the launch of its latest artificial intelligence model. Blade 3which outperformed other AI models in benchmark tests.
Price Action: Meta stock closed 0.52% lower at $493.50 on Wednesday, according to Benzinga Pro.
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Disclaimer: This content was partially produced with help from Benzinga Neuro and was reviewed and published by Benzinga editors.
Mark Zuckerberg Photo by Alexandros Michailidis on Shutterstock