Meta is making bold moves in the AI landscape, developing its own search engine while experiencing substantial financial growth, marking a significant shift in its strategic direction and market position.
Independent Search Capabilities
Meta is secretly developing its own search engine technology to reduce dependence on Google and Microsoft Bing. Under the leadership of senior engineering manager Xueyuan Su, the company has been advancing its web-crawling and indexing technologies for the past year. This strategic move aims to enable Meta AI to provide autonomous, conversational answers without relying on external search platforms.
AI User Base Expansion
Meta AI has achieved remarkable user engagement, reaching 185 million weekly users across Facebook, Instagram, and WhatsApp platforms. The company's AI assistant is projected to become the world's most-used AI assistant by the end of 2024, with approximately 500 million monthly active users, demonstrating significant market penetration despite competition from ChatGPT.
Financial Performance and Investment
Wall Street analysts anticipate impressive Q3 2024 results, with projected earnings per share of $5.21, translating to a profit of $13.49 billion – a 16% year-over-year increase. Revenue is expected to surge by 18% to $40.19 billion. The company's stock has shown remarkable performance, rising approximately 67% year-to-date, with shares trading around $577.
AI Infrastructure Investment
Meta's commitment to AI development is reflected in its substantial spending, with total investments expected to reach between $35 billion and $40 billion in 2024. JPMorgan Chase analysts predict this figure could increase to $42 billion in 2025, highlighting Meta's long-term commitment to AI innovation.
Strategic Partnerships
The company has strengthened its position through strategic partnerships, including a recent collaboration with Reuters to enhance Meta AI's responses to current events. This partnership, combined with the introduction of Llama 3.2, Meta's first open-source multimodal large language model, demonstrates the company's comprehensive approach to AI development.
Future Outlook
Jefferies analysts maintain a positive outlook on Meta's growth trajectory, citing increased user engagement from AI investments, improved advertiser efficiency, and expanding monetization opportunities across platforms like WhatsApp and Llama. This multi-faceted approach positions Meta strongly in the competitive AI landscape while reducing reliance on external technology providers.