Meta’s AI Plans Are Not Just About The Metaverse
Contributor since 2018 / 10339 Followers
Summary:
- Meta Platforms stock has almost tripled after hitting multi-year lows in November of 2022, but we are nowhere close to the highs of late 2021.
- Meta has been a beneficiary of the recent tech stock rally but the market is yet to appreciate some of Meta’s recent strategic decisions that are revealed in this article.
- I remain bullish on the prospects for Meta not just because of its recent strides in embracing AI technology but because of many other reasons.
Justin Sullivan
There is no keeping down Meta Platforms, Inc. (NASDAQ:META). There is no shortage of Meta bears as well, but time and again, the company has proven that its core business is strong enough to come back from seemingly catastrophic events. Meta investors, including myself, have gone through a lot in the last few years including legal troubles, massive fines, privacy breaches, corporate name changes, and the rise of new-generation social media platforms such as TikTok. Although META stock has been volatile, it has made a strong comeback every time naysayers thought the company was doomed. META stock has almost tripled after hitting multi-year lows in November of 2022, but we are nowhere close to the highs of late 2021.
With the world moving toward a future enabled by AI technology, investors have duly rewarded many tech companies reshaping the global technological landscape. Meta has certainly been a beneficiary of this tech stock rally, but I believe the market needs some more clarity about how the company is setting itself up to benefit from the adoption of AI technology.
The Human-Like AI Model Is Just The Start
Meta Platforms recently unveiled its latest groundbreaking development – an Artificial Intelligence model with unprecedented capabilities. Named I-JEPA, this state-of-the-art model boasts an advanced level of accuracy and proficiency in the analysis and completion of unfinished images.
I-JEPA, which is considered to have ‘human-like’ abilities, is poised to revolutionize the field of image processing, surpassing the performance of existing models in delivering enhanced image analysis and completion. I-JEPA stands out from other generative AI models by utilizing background knowledge to fill in missing portions of images, going beyond the conventional focus on neighboring pixels. By leveraging a broader understanding of the world, I-JEPA achieves higher accuracy and delivers more realistic and coherent completed images. As a proponent of open-source AI research, Meta Platforms has announced plans to grant researchers access to components of I-JEPA which will allow the company to identify safety vulnerabilities and reduce costs. By sharing models developed by their researchers, Meta aims to drive industry standardization and capitalize on improvements made by others.
Meta Platforms is not only investing in AI models but also incorporating generative AI features into its consumer products. The company has plans to introduce tools such as chatbots with different personas for Messenger and WhatsApp, as well as Instagram features that can modify user photos based on text prompts.
Recently, Instagram introduced the highly anticipated Broadcast Channels feature in India, allowing creators to engage directly with their followers at scale. Like WhatsApp and Telegram, the Instagram Broadcast Channels feature is a public one-to-many messaging tool that enables creators to deepen their connection with their audience. This new feature provides an avenue for creators to share text, videos, images, and behind-the-scenes moments with their followers, while followers can react with emojis or participate in polls.
Meta also unveiled Collaborators, a feature that allows creators to invite other creators or fans to join their broadcast channel, fostering collaboration and community engagement. With Collaborators, creators can expand the scope of their content and offer diverse perspectives to their followers. Additionally, the company has revealed plans to introduce further enhancements for Instagram creators. Meta is working on question prompts for followers, which will enable creators to interact with their audience more effectively. Furthermore, a dedicated Channels tab in the inbox will make it easier for users to access the channels they have joined and discover new ones. With these upcoming features, Meta aims to empower creators and increase engagement and monetization opportunities.
Mark Zuckerberg, Meta’s CEO, announced the global rollout of Instagram’s Channels feature on his channel, recommending popular channels such as the International Cricket Council, director Karen X. Cheng, influencer Michael Le, and artist Daniel Arsham. By highlighting these channels, Mr. Zuckerberg encouraged users to explore and engage with diverse content creators.
Meta’s expansion of the Channels feature is not limited to Instagram alone. The company recently launched Channels on WhatsApp, albeit with a different purpose. While Instagram’s Channels aim to facilitate direct engagement between creators and followers, WhatsApp’s Channels focus on providing a platform for local and global authorities and agencies to connect with people. This strategic expansion allows the company to leverage its platforms to cater to diverse users, their needs, and preferences.
These product launches align with the company’s plans to make generative AI tools available to its 3.8 billion monthly users. While competitors such as Alphabet Inc. (GOOG), Microsoft Corporation (MSFT), and Snap Inc. (SNAP) have already integrated similar tools into their products, Meta is taking steps to catch up and deliver AI-driven features that enhance user engagement. The company is making significant strides in AI infrastructure and unveiled a new custom silicon chip, an AI-optimized data center design, and the expansion of its 16,000 GPU supercomputer. With the ongoing reorganization of its AI divisions and significant investments in infrastructure, Meta is determined to meet the demands of AI product needs and embed generative AI technology into every aspect of the company’s offerings.
These recent developments highlight how the company is leveraging AI for improving productivity and efficiency within its organization while continuing to focus on improving the user experience.
Meta Provides Open-Source AI Model As A Strategic Move
Meta Platforms has emerged as a leading publisher of open-source AI research through its in-house research lab. While a leak of potent AI software, specifically Meta’s LLaMA (Large Language Model Meta AI), may have initially harmed Meta’s intentions, it has sparked a race among researchers and independent coders to improve and upgrade this software. Many of them are openly sharing their work, positioning Meta as a potential owner of a dominant AI platform. Consequently, Meta might secure its position in the AI ecosystem by shaping the direction of AI at a fundamental level and taking control of the user experiences.
In contrast to other AI models like Google’s Bard and OpenAI’s ChatGPT which are free to use but not open source, Meta’s LLaMA and its derivative large language models can be run by anyone with sufficient computer hardware. This accessibility enables broader usage and experimentation, as these models can be deployed on commercially available laptops. This strategic advantage could create a highly profitable business opportunity for Meta, as it gains control over the AI landscape and potentially monetizes it through various avenues.
The open-source approach, however, has sparked both excitement and concern within the tech industry. By releasing the weights of its LLaMA AI system, trained on vast amounts of data, the company enabled researchers and developers to deploy powerful software quickly and affordably. This move has raised concerns about potential misuse, as evidenced by instances of the technology generating problematic text, including instructions for illegal activities and racist content. These incidents prompted Stanford University to remove an AI system built using Meta’s technology due to concerns about misuse.
Despite the company issuing takedown notices to remove the leaked code from public access, Meta’s chief AI scientist, Yann LeCun, expressed a sentiment that favors openness. LeCun’s statement, “The platform that will win will be the open one,” suggests that Meta may embrace the open-source model as a competitive strategy. However, while Bard and ChatGPT prioritize safety measures, Meta’s semi-open-source LLaMA and LLMs may require additional considerations to ensure they align with specific human values. Without proper security measures and regular updates, open-source projects may be more susceptible to hacking and unauthorized access. Despite these potential risks, Meta’s executives have chosen not to sign a statement endorsed by top executives from OpenAI, DeepMind, Microsoft, and Google, which drew parallels between the risks of AI and those of pandemics and wars. Instead, Meta remains focused on incorporating safety checks within AI systems, a viewpoint actively advocated by Yann LeCun for responsible AI development.
Meta Platform believes in the power of open-source software to level the playing field in the AI sector and foster a vibrant ecosystem of innovation. This move extends beyond LLaMA, with Meta AI also open-sourcing its Massively Multilingual Speech (MMS) model, providing support for speech recognition and synthesis in a wide range of languages. However, balancing openness and safety remains a crucial challenge for Meta and every other AI developer as they navigate the future of AI platforms.
Takeaway
Meta Platforms’ commitment to open-source AI research, exemplified by the release of the I-JEPA model, positions the company as a key player in the AI landscape. While the open-source model appears to be a lot riskier, the company believes that fostering collaboration and innovation will help in addressing safety concerns and higher R&D costs. Meta’s expansion into consumer products further highlights its strengths in the user experience market through AI-driven functionalities. The I-JEPA model is a significant improvement setting a new milestone for Meta in AI technology. I remain bullish on the prospects for Meta not just because of its recent strides in embracing AI technology but because of many other reasons including the long runway for growth for the advertising business in emerging markets and the monetization potential of WhatsApp.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Unlock Alpha Returns With Our Comprehensive Investment Suite
Beat Billions offers a wide range of tools and resources to help you achieve superior investment returns. Our team of expert analysts uncovers undercovered and thinly followed stocks to supercharge your investment returns.
- Access our model portfolios and receive actionable ideas to build a successful portfolio.
- Join our community of like-minded investors and exchange ideas to maximize your investment potential.
- Keep track of the real-time activities of investing gurus.
Don’t miss out on our launch discount – act now to secure your subscription and start supercharging your portfolio!
