Meta shares fall as frustration grows over AI spending plans
Summary
Meta's shares dropped by 11% after the company reported higher revenue but lower profits for the quarter. Meta plans to increase its spending on artificial intelligence (AI) projects to up to $145 billion this year, aiming to boost its business and start selling AI tools to other companies.Key Facts
- Meta’s revenue grew by 28% from the previous year in the April to June quarter.
- Meta’s profits fell by 14% during the same period.
- The company will spend between $130 billion and $145 billion on AI projects in 2024, up from $125 billion planned three months ago.
- CEO Mark Zuckerberg said AI is improving core parts of Meta’s businesses like Instagram and Facebook.
- Meta plans to create AI chatbots called "agents" that can work autonomously and be available 24/7.
- Meta aims to sell its AI models and software tools, starting with making its Muse Spark AI model easier for other companies to use.
- Zuckerberg highlighted a large business opportunity from selling AI services, including software interfaces known as APIs.
- Meta is focusing on building AI tools for both internal use and external sales to other businesses.
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