From Nasdaq: 2024-06-20 09:05:00

Artificial intelligence has become a prominent force in various industries since the launch of OpenAI’s ChatGPT. Companies like Nvidia and Microsoft are reaping significant profits from the AI arms race. However, Meta Platforms, the parent company of Facebook and Instagram, has been quietly working on advanced AI algorithms for over 15 years and aims to become the world’s leading AI company.

Meta’s AI technology powers its products, improving content recommendations, advertising, and user safety. Its large language model, Llama 3, is now open source and integrated into its ad platform, making it easier for marketers to create effective campaigns. CEO Mark Zuckerberg has committed to investing significantly in building more advanced AI models, despite the substantial costs involved.

Meta’s AI ambitions have led to an increased capital expenditure outlook, paving the way for future AI advancements across its product offerings. While direct monetization from AI efforts may take time, Meta remains an attractive investment opportunity with analysts predicting robust earnings growth. With a solid cash position and strong free cash flow generation, Meta’s AI focus could lead to significant value creation for investors in the long term.



Read more at Nasdaq: 1 Stock to Buy With Ambitions of Becoming the Leading Artificial Intelligence (AI) Company in the World