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- 1 Meta Platforms Inc., the tech giant came up with a new plan to invest Billions in the widely accepted Artificial Intelligence (AI) technology.
- 2 The plan is going to be a big bet for Meta, which confirmed an investment of $30 to $35 Billion in 2024, surpassing the current year’s target.
Artificial Intelligence, one of the most advanced and widely accepted technology continuously expands its room in different sectors with more room to run. From computer systems and machines to education and fashion, the technology created an unbeatable position and Meta Platforms, a giant tech player, is no exception. To offer the world with innovations and inventions, Meta is continuously working with AI.
The firm is going to take a big bet on AI next year. The plan is to invest around $30 to $35 Billion in AI in 2024.
Meta’s Vision on AI
As a bold move, Meta is all set to make a huge investment in AI infrastructure next year. Meta unveiled the plan to allocate around $30 Billion to $35 Billion for AI infrastructure, which is much more than the investment in AI in the current year’s target.
The plan announcement sent shockwaves to the tech industry, expecting tough competition in the tech industry in upcoming years. The news was announced and confirmed by the Chief Financial Officer of Meta, Susan Li. “Meta is all planned to invest in AI hardware, focusing on the data-center architecture expansion,” said Susan Li.
The plan comes out amidst concerns about a rocky advertisement market, with demographic tensions affecting advertising spending. Despite all these ups and downs, Meta’s earnings per share is observed to be an impressive growth of 168% in the third quarter of 2023.
To sustain a tough and reputed position, Meta accepted all the challenges related to the advertising market and heightened capital expenditure for advancement. The ongoing conflict in the Middle East best explains the impact on the advertisement market.
Thus, investing in relevant sectors with higher chances of winning matters.
Why Does Investment Matter?
One of the main concerns is Meta’s Reality Labs, working with Ray Ban Meta smart glasses, Virtual-reality headsets, and different software for the Metaverse. Despite all success and continuous growth, the Lab resulted in a loss of around $3.7 Billion in 2023’s third quarter, raising concern for Meta. The situation simply raises fingers towards Meta and its investment decisions on Artificial Intelligence in 2024.
As per the analysts, the investment is most probably going to benefit Meta’s social applications including Instagram and Facebook. In addition to this, the avatars created by Meta will become heavily popular in the marketplaces and across these applications, as per Li’s point of view. The investment plan is going to influence the other giant players operating in the technology sector. Companies including Nvidia corporation, Arista Networks Inc., and Super Micro Computer Inc. may benefit from Meta’s investment. Major influence can be experienced on the stock prices.
Conclusion
The announcement from the Meta Platforms office shocked the giant tech players. Meta is all prepared to make a huge investment in AI technology in 2024. The plan is going to be a big bet for Meta due to ongoing conflict in the Middle East having a huge impact on the advertising market.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
