The actions of Meta plunged 15% when Wall Street opened on Thursday, wiping about $25 billion off the value of the parent company of Facebook and Instagram, as investors reacted to the commitment to increase spending on artificial intelligence (AI).
ADVERTISING
🇬🇧 Subscribe to the best newsletter about AI (in English 🇬🇧) (I.e. Sign it the best newsletter about AI (in Portuguese 🇧🇷)
Mark Zuckerberg, founder and CEO of Meta, said on a conference call Wednesday that spending on the technology would have to grow “significantly” before the company could earn “a lot of revenue” from new AI products.
Meta shares had been boosted in 2023 by Zuckerberg's tough cost measures in what he described as a "year of efficiency." The easing of that containment worried investors after Meta raised the upper limit of its capital expenditure guide on Wednesday, from $37 billion to $40 billion.
Last week, Meta launched the llama 3, the latest version of its AI model, along with an image generator that updates photos in real time as users enter prompts. The company's AI-powered assistant, Meta AI, is expanding to its platforms in more than a dozen markets outside the US with the update, including Australia, Canada, Singapore, Nigeria and Pakistan. Chris Cox, chief product officer at Meta, said the company is still “working on the right way to do this in Europe.”
ADVERTISING
The stock's drop follows a record gain in Meta's market value in February, when the company added $196 billion to its market capitalization - a measure of a company's value - after declaring its first dividend. At the time, it was the biggest one-day gain in Wall Street history.
However, weeks later, the Nvidia, the leading supplier of chips for training and operating AI models, broke that record with a gain of $277 billion.
Read also
* The text of this article was partially generated by artificial intelligence tools, state-of-the-art language models that assist in the preparation, review, translation and summarization of texts. Text entries were created by the Curto News and responses from AI tools were used to improve the final content.
It is important to highlight that AI tools are just tools, and the final responsibility for the published content lies with the Curto News. By using these tools responsibly and ethically, our objective is to expand communication possibilities and democratize access to quality information. 🤖
ADVERTISING
Looking for an Artificial Intelligence tool to make your life easier? In this guide, you browse a catalog of AI-powered robots and learn about their functionalities. Check out the evaluation that our team of journalists gave them!
