A generative AI gold rush is underway, but don't expect to see profits right away.
The company is already quite profitable, with sales of $36.5 billion and net income increasing to more than $12 billion in the last quarter alone. However, revenue growth is expected to slow going forward. At the same time, we are spending more on AI and the Metaverse than ever before.
“Historically, investing in building these new scale experiences in our apps has been a great investment for us and for the investors who support us,” Zuckerberg said during the company's first-quarter earnings call. “It has been a very good investment in the long term,'' said Story and Reel. “And here, too, the initial signs are very positive. But building cutting-edge AI is a larger undertaking than any other experience we add to the app, so it will probably take several years.” I guess.”
He said the Meta AI assistant has been “tested out” by “tens of millions of people” since it became widely available last week, but given that it's starting to gain prominence in areas such as Instagram's search box. Well, that would be expected. The real test will be whether Meta AI becomes a product that people come back to often, and whether many people want to use an AI assistant in their social media apps.
Looking ahead, Meta is considering multiple ways to monetize Assistant. Assistant is currently free to use.
“Building a large business here means people can pay to expand business messaging, introduce advertising and paid content into AI interactions, use bigger AI models and access to more computing. There are several ways to do this, including doing so,” Zuckerberg said. “On top of that, AI is already helping apps increase engagement, which naturally leads to more ads being shown and directly improving ads to provide more value.” It will be possible.”
A different path than OpenAI
Zuckerberg also suggested that over the next year or so, the quality of ads could also improve through the use of meta AI, which the company says will help the company use its Assistant to better understand what people want to buy. It is suggested to analyze the usage of . This approach takes Meta on a different path than his OpenAI. OpenAI has historically resisted advertising as a business model in favor of a subscription and early enterprise focus.
“We thought AR glasses weren’t really going to become a mainstream product until we had full holographic displays,” he said. “But it is now clear that there is a meaningful market for fashionable AI glasses without a display.”
