Meta's AI Ambitions: Pushing Boundaries and Budgets
Meta Platforms revised its annual capital expenditures forecast, focusing on AI advancements. Investments include AI data centers, partnerships, and new ad tools. CEO Mark Zuckerberg is steering these efforts to solidify its market position amidst competition and economic challenges, aiming to enhance revenue streams across its social media platforms.
Meta Platforms has adjusted its annual capital expenditure estimates, in response to ambitious AI projects, pushing its stock up nearly 9% after-hours. The company now anticipates spending between $66 billion and $72 billion, revising a prior forecast of $64 billion to $72 billion.
This adjustment comes as Meta intensifies its AI race, particularly after the lukewarm response to its Llama 4 model. The company is aggressively competing for top-tier talent, offering competitive pay packages, as it aims to become a leader in AI-driven advancements in its search and cloud sectors.
CEO Mark Zuckerberg has committed extensive resources into AI, including investments in Scale AI. Innovations like the AI-powered image-to-video ad creation tool are designed to attract advertisers, while the monetization of platforms like WhatsApp and Threads further boosts revenue potential in a competitive environment.
(With inputs from agencies.)
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