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The Markets
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Online business & e-commerce

Meta’s largest investment is ‘advancing AI’: will it be enough to compete?

Meta Platforms Inc (NASDAQ:FB) chief executive Mark Zuckerberg has doubled down on the Facebook owner's AI efforts as it seeks to prove it can compete in the Big Tech AI arms race.

“Our single largest investment is in advancing AI and building it into every one of our products,” Zuckerberg said in a letter to staff on Tuesday following the company’s announcement of another round of layoffs, a pivot from Meta's previous focus on the Metaverse.

Meta announced in February that it was releasing a new AI tool LLaMA, short for Large Language Model Meta AI. The tool was designed for researchers, not public use, but just a week after it was announced, the AI language model was leaked online.

In late February, the company said it would be creating a new product group focused on generative AI, a new set of techniques that allow computers to generate text, draw pictures and create other media that resembles human output.

The team was tasked with building AI-powered tools for WhatsApp, Messenger, and Instagram and could eventually include “AI personas.”

However, some believe Meta’s entrance into the AI race is nothing more than keeping up appearances.

And, at this stage, it’s unclear how the latest round of jobs cuts will affect Meta employees working on its robot offering, such as its recently announced generative AI-focused product group.

When announcing the headcount reduction, Zuckerberg said the company would be making layoffs in its technology groups in late April.

With interest in AI opportunities spiking following the release of OpenAI’s language bot ChatGPT in late 2022, tech companies are investing big in developing their me-too offerings.

Microsoft, an investor in OpenAI, has incorporated ChatGPT into its search engine, Bing, while Google announced it is creating its own rival language bot, Bard.

Contact the author at emily.jarvie@proactiveinvestors.com

Follow her on Twitter @emilyjjarvie

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