Meta will increase spending on AI to $40bn in 2024
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Meta plans to increase investments in artificial intelligence and related infrastructure. According to the new forecast, spending for these purposes in 2024 will amount to $35-40 billion instead of the previously expected $30-37 billion.
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Additional funds will be spent on chip development, data centres, R&D and other AI-related areas. This decision comes amid the company's active ramp-up of efforts in the field of artificial intelligence.
In the first quarter of 2024, Meta's revenue was $36.5bn, up 27% from a year ago. However, revenue growth is expected to slow slightly in the second quarter to between $36.5bn and $39bn, below analysts' forecasts.
The prospect of high costs with subdued revenue growth worried investors, leading to a 16% drop in Meta's share price.
In addition, the Reality Labs division again recorded a loss of $3.8bn on revenue of $440m.
Nevertheless, the company remains optimistic about the direction of meta universes. Mark Zuckerberg highlighted the success of Ray-Ban smart glasses, completely sold out in some markets.