Meta bets high on ‘Superintelligence’
Meta's latest financial results show that the company is performing very well, which is allowing it to make massive investments in artificial intelligence.
Here's a breakdown of the key points:
Strong Financials: Meta's revenue and profit are up significantly. This strong performance is critical because it gives the company the financial muscle to pursue its ambitious AI goals.
AI's Role in Success: Meta attributes its current success to earlier investments in AI. These AI tools have already helped to boost its advertising business by increasing ad views and the amount of time people spend on its apps.
The "Superintelligence" Bet: The company is now focused on building what CEO Mark Zuckerberg calls "superintelligence"—an AI that surpasses human intelligence. This effort requires an enormous amount of money. Meta plans to spend between $66 billion and $72 billion this year on AI infrastructure, with that number potentially exceeding $100 billion next year.
A Different Approach: Unlike many competitors who are focusing on selling AI to businesses, Meta is aiming to build a personal AI for consumers. While the exact uses are still a bit vague, Zuckerberg suggests it will help people be more creative and lead more fulfilling lives.
Current AI Applications: In the meantime, Meta's AI is already at work behind the scenes, improving things like:
Showing you more relevant ads and content.
Helping small businesses create images and videos for their ads.
The company is developing AI-powered glasses that can respond to voice and camera input, with the idea that those without them might be at a "cognitive disadvantage."
Boosting ad campaign effectiveness with tools like Advantage+.
Enhancing business messaging through brand-specific chatbots.
What this means for us:
Meta is making a huge and expensive bet on the future of AI, but its current business is strong enough to support these massive investments. The company sees its AI strategy as an evolution of its core business, not a complete replacement, which is a key difference from its previous, less successful push into the metaverse.
Read more here: https://www.warc.com/content/feed/meta-q2-strong-results-see-in-superintelligence-era/en-GB/10838