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Palo Alto, California, USA
Mark Zuckerberg is spending billions in AI but will he ever make the money back?
Meta is going to pick up a large tab of AI chips from Nvidia this year that will cost billions but how is the company planning to make the money back?
Meta is heavily invested in AI and has already shown its focus by spending billions of dollars on the hardware that will be powering the AI applications, servers and even train them. Mark Zuckerberg, CEO, Meta recently talked about being excited about AI which is now available through WhatsApp, Instagram and even its Ray Ban smart glasses. The AI chatbot is able to answer your queries, find your a recipe and even help you create AI-generated images.
But like every business, Meta is expected to start making money in the AI arena which will justify all these billions being pumped into the business. However, Zuckerberg was recently quoted saying that AI will be a long-term investment which will eventually give profits in the next several years.
The Meta CEO making these claims will definitely get the market worried, especially those who have invested money in the platform. Having said that, AI is still in its infancy and the industry is still looking for ways to utilise its potential and get people to spend on the various tools.
We are seeing the demand for AI applications in the enterprise sector who are ready to invest heavily but that does not translate into the amount of funds needed to keep the AI systems running.
Meta’s CEO shared these details during its recent financial results, which also sees Zuckerberg talk about buying 350,000 units of Nvidia H100 AI chips by the end of 2024 which is definitely going to add more zeros to Meta’s financial upkeep of its AI systems. Meta is offering most of its applications for free right now, while OpenAI and other tech giants in the AI field have found ways to monetise their services.
Meta will need to monetise the technology sooner rather than later, or we could even see the company resort to its tried-and-tested ads-for-free service with the AI applications also which will surely concern authorities across the board.
