Meta CEO Mark Zuckerberg tried to calm investors after the company announced it's going to spend more on AI but couldn't assuage concerns as shares fell more...
) fell more than 10% on Thursday after CEO Mark Zuckerberg revealed that the social media company is pouring more cash into its AI efforts, spooking investors.
But he also admitted that it will likely take years before Meta turns a profit on its AI investments. In January, Zuckerbergthat Meta will purchase some 350,000 Nvidia H100 AI chips by the end of the year. While Nvidia doesn’t release the exact price of its data center chips, estimates indicate they cost anywhere between $20,000 and $40,000 apiece. That would put Meta’s estimated costs well into the billions of dollars.
“There’s no doubt that Meta is all in on AI but to achieve its vision, the company must make big investments in infrastructure. Mark Zuckerberg’s ‘heads up’ was reminiscent of what he once said about the metaverse,” Forrester vice president and research director“That didn’t exactly go so well, but this is different than Meta’s metaverse gamble because AI has real and practical use cases now.
Meta’s AI investments include two divisions, one dedicated to consumer users and the other focusing on advertisers. On the consumer front, there’s the company’s new Meta AI chatbot which answers users’ general knowledge questions. Then there’s Meta AI’s customer side, which allows advertisers to build out advertising campaigns on the company’s social platforms using AI.
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