Achi news desk-
Investors apparently disapproved of Facebook parent company Meta’s plans to pour a large sum of money into artificial intelligence (AI), wiping $163 billion off the company’s market value on Thursday.
Mark Zuckerberg’s Meta share price surged 13% as the company reported profits this quarter that doubled year-on-year, with revenue up 27%.
A tech behemoth in Menlo Park planned to invest $5 billion in AI as the global tech competition jumped to another level with Microsoft, Google, OpenAI, and other big-name investors jumping in to stay ahead of the race.
Despite the projections that the return on AI investment would be huge, it is reported that the necessary equipment for such a plan will take and the cost would also be high.
“The language around spending plans has become bolder once again, and this could be a wake-up call for markets,” Sophie Lund-Yates, chief equity analyst at Hargreaves Lansdown, was quoted as saying in a statement CNN Thursday’s report.
“For all of Meta’s bold AI plans, it cannot afford to take its eye off the core of the business — its core advertising activities… Meta’s resources are vast but not endless, and its share of the digital advertising market needs to be protected on every count,” she added.
According to the technology behemoth, the full-year expansion is estimated in the $35-$40 billion range, a significant increase from the previous projections, as previously reported by Meta.
