Meta Platforms Inc META CEO Mark Zuckerberg touched on the role of artificial intelligence in upcoming products and the transformation of its apps at the company’s fourth-quarter earnings call.
What Happened: Zuckerberg called AI the “foundation” of Meta’s discovery engine and the company’s ads business.
“We also think that it's going to enable many new products and additional transformations in our apps,” said the Meta chief executive.
“A generative AI is an extremely exciting new area with so many different applications and one of my goals for meta is to build on our research to become a leader in generative AI.”
Generative AI refers to computer algorithms that can be used to create new content like text, images, and video. ChatGPT is considered one such example.
See Also: How To Buy Meta (Formerly Facebook) Shares
Why It Matters: Zuckerberg said that Meta’s priorities hadn’t changed since the last year but noted that the two major technological waves driving the company’s roadmap are AI currently and over the longer term the so-called metaverse.
He said that Facebook and Instagram are shifting away from being “organized solely around people” to “increasingly showing more relevant content” recommended by the company’s AI systems. Zuckerberg said the company’s especially focused on short-form video in that context.
Meta announced fourth-quarter financial results on Wednesday with a revenue of $32.17 billion recorded in the period — a fall of 4% year-over-year. However, the figure came ahead of a Street estimate of $31.53 billion.
Price Action: Meta shares soared 20.2% to $183.99 in the regular session on Wednesday and gained another 2.8% to $153.12 in the after-hours trading, according to data from Benzinga Pro.
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