Thursday, 24 April 2025
26.8 C
Singapore
29.9 C
Thailand
19.5 C
Indonesia
28.8 C
Philippines

Meta’s long-term investment in generative AI may take years to yield profits

Meta CEO Mark Zuckerberg discusses the long-term investment in generative AI, expecting it to take years before it becomes profitable.

The race to leverage generative AI is in full swing, but Meta, formerly known as Facebook, warns that turning a profit from this technology will not be immediate.

During a recent earnings call, Meta CEO Mark Zuckerberg shared insights with investors about the company’s ambitious plans for its AI technologies, which have now been integrated across popular platforms such as Instagram, Facebook, and WhatsApp. Despite Meta’s robust earnings—netting over US$12 billion in income from US$36.5 billion in revenue last quarter—Zuckerberg stressed that revenue growth might slow as investments in AI and the metaverse ramp up.

“Historically, investing to build these new scaled experiences in our apps has been a very good long-term investment for us and for investors who have stuck with us,” Zuckerberg remarked. He likened the introduction of generative AI to earlier successful features like stories and reels. However, he acknowledged that AI represents a more significant challenge, one that could take several years to fully implement as a profitable venture.

Meta has already seen tens of millions of users engage with its new AI assistant since its widespread rollout. This initial popularity is a positive sign, but the true measure of success will be its sustained use and the extent to which it can attract a regular user base.

Zuckerberg outlined multiple strategies for monetizing the AI assistant, which is currently free. These include expanding business messaging, integrating advertisements or premium content into AI interactions, and offering access to more advanced AI models for a fee. Moreover, AI technology is enhancing user engagement across Meta’s apps, leading to increased ad views and more targeted, effective advertising.

“In the next year or so, we anticipate that the Meta AI could also enhance the quality of our ads by analysing how people use the assistant, which will give us deeper insights into their preferences and potential purchasing behaviours,” Zuckerberg explained. This strategy marks a departure from other AI pioneers like OpenAI, which have focused on subscription models and corporate services rather than advertising.

In addition to AI, Zuckerberg expressed optimism about Meta’s partnership with Ray-Ban on smart glasses. Despite lacking a display, the fashionable, AI-enhanced glasses have sold out in various styles and colours, demonstrating significant market demand.

“I used to think that AR glasses wouldn’t really be a mainstream product until we had full holographic displays,” Zuckerberg concluded.

Meta’s journey into generative AI is set to be meticulous and possibly lengthy, but it is poised to reshape how the tech giant innovates and earns in the future.

Hot this week

YouTrip adds a Malaysian Ringgit wallet to help you save more on JB trips

YouTrip now lets you store MYR and offers free JB shuttles and cashback to celebrate, making your trips across the Causeway more rewarding.

LG reveals a smart monitor on wheels—but it still needs to be plugged in

LG’s new 31.5" Smart Monitor Swing rolls on wheels and runs webOS, but it still needs a power plug and costs around US$740.

Microsoft highlights growing AI-assisted scams and offers advice on how to stay safe

Microsoft’s latest report warns of rising AI-driven scams and outlines new tools and tips to help users stay safe online.

Qualcomm unveils new Snapdragon 8s Gen 4 with high-end features for less

Qualcomm quietly unveils the Snapdragon 8s Gen 4 with high-end features and strong performance for next-gen smartphones at a lower price.

Bethesda releases The Elder Scrolls IV: Oblivion Remastered – and you can play it now

Bethesda released Oblivion Remastered, which features full visual upgrades and quality-of-life improvements and is now available across major platforms.

POCO launches entry-level C71 smartphone in Singapore with premium features

POCO launches the budget-friendly C71 smartphone in Singapore, offering premium design, enhanced cameras, and smooth performance at S$109.

NVIDIA uses AI to address climate, wildlife and disaster risks

NVIDIA’s AI tools support climate action, wildlife monitoring, and disaster risk mitigation, with uses spanning sea, land, sky and space.

Netflix raises subscription prices in Singapore again

Netflix again raises subscription prices in Singapore, with new rates for all plans and extra member slots.

GameMax unveils Blade Concept ATX case with bold design and powerful features

GameMax launches the Blade Concept ATX case, which features a striking blade design, RGB lighting, and support for high-end liquid-cooled PC builds.

Related Articles

Popular Categories