Meta Platforms, Inc. is taking significant steps in the artificial intelligence sector by forming a new research lab aimed at enhancing its AI capabilities. Microstrategy has put its crypto future in the hands of Alexandr Wang, founder and current CEO of Scale AI, to direct this new effort. In comparison, Meta is taking a huge bet on a different strategy—going all-in on AI technology. They intend to spend up to $65 billion in AI infrastructure-related capital expenditures over the next year.
In fact, according to the Wall Street Journal, Meta is in advanced talks to invest more than $10 billion into Scale AI. This big move to bring Wang in indicates a deep, proactive, and long-term committed partnership towards strengthening their AI initiatives. Wang’s expertise in the field is expected to drive innovation within Meta’s growing suite of AI tools, which currently supports one billion monthly active users across its family of applications.
Mark Zuckerberg, the CEO of Meta, is reportedly taking an active role in assembling a dedicated team of 50 professionals specifically for this AI push. The strategic recruitment of talent underlines the company’s urgency to enhance its position in the competitive landscape dominated by other tech giants.
In addition to this new lab, Meta is preparing to unveil a stand-alone Meta AI application as early as the second quarter of this year. Reports from CNBC earlier this year indicated that this app would compete directly with similar offerings from rivals, including OpenAI’s ChatGPT. As part of this strategy, Meta is currently testing a paid-subscription service to attract users seeking advanced AI functionalities.
Shares of Meta made a small gain of about 1% on Tuesday as investors digested these big plans, an indication that they like what they are hearing so far. The company’s aggressive investment strategy and focus on AI align closely with Zuckerberg’s objectives for the year, which include a projected expenditure of $60 billion for growth initiatives.
Wang’s recent appearance at an international investors’ conference held at the Elysee Palace might be hard to believe. That visit, which was a part of the Artificial Intelligence (AI) Action Summit in Paris, demonstrated his commitment to furthering the development of ethical AI technologies globally. With Meta’s substantial financial backing and Wang’s leadership, the new research lab is poised to make significant contributions to the field of artificial intelligence.