Meta Platforms Sets Ambitious Goals in AI: What You Need to Know
When you think of Meta Platforms (NASDAQ: META), social media likely comes to mind. After all, the company owns some of the most popular apps out there, including Facebook, Messenger, WhatsApp, and Instagram. However, Meta is expanding its horizons beyond just social media.
In recent years, the company has made significant investments in artificial intelligence (AI). This includes the development of advanced technologies like large language models (LLMs) and AI assistants.
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Recently, CEO Mark Zuckerberg announced plans to invest as much as $65 billion in AI infrastructure this year, highlighting AI as a crucial focus for 2024.
During the company’s latest earnings report, Zuckerberg shared three bold AI predictions. This raises the question: Should you consider buying Meta stock before these predictions materialize?
Image source: Getty Images.
A Massive User Base: 3.3 Billion Daily Users
To provide context, let’s look at Meta’s current standing. The company controls top social media platforms, attracting over 3.3 billion daily users worldwide. This impressive reach gives Meta a strong competitive advantage.
If someone leaves WhatsApp for a competing app, they may find that their contacts are not present, which encourages them to stay with Meta. This user retention is vital to its revenue model.
Advertisers choose to promote their products on Meta’s platforms, knowing they are likely to reach consumers. This strategy generates billions in revenue each year. Additionally, as Meta explores AI, it may open up new revenue streams beyond social media in the future.
Last year, Meta aimed to onboard 600,000 graphics processing units (GPUs)—the critical hardware needed for AI. Recently, the company announced plans to increase that number to 1.3 million by year’s end. These GPUs are empowering Meta to train Llama, its proprietary LLM, now in its fourth generation.
Llama’s open-source model allows anyone to access and improve it, potentially creating an industry standard and fortifying Meta’s position as a leader.
An Intelligent and Personalized AI Assistant
Next, let’s delve into Zuckerberg’s three notable AI predictions for the year. Firstly, he anticipates that Meta AI, the company’s AI assistant, will reach 1 billion users by 2025.
Zuckerberg believes Llama will become “the most advanced and widely used” LLM this year. He also mentions that Llama 4 will possess advanced reasoning capabilities, opening avenues for considerable growth as AI begins to tackle real-world problems.
Lastly, Zuckerberg predicts the development of an AI engineering agent with skills comparable to a mid-level engineer, a breakthrough he describes as “potentially one of the most important innovations in history.” Recently, Meta stated its intent to develop an AI engineer for coding, further expanding its R&D efforts in AI.
Tools for Achieving Ambitious Goals
Returning to the original question: Should Zuckerberg’s predictions encourage you to invest in Meta now before they come to fruition?
While it’s uncertain if Meta will succeed in every endeavor, it’s evident that the company is well-equipped for potential success. Financially, Meta remains strong, allowing it to invest in AI and increase revenue through share buybacks and dividends.
Historically, Meta’s significant investments take time to yield results, and this time will likely be no different. However, 2025 could be pivotal, marking the moment investors may start observing Meta’s progress in the high-growth AI sector.
The introduction of a widely adopted AI assistant could enhance user engagement with Meta’s apps, ultimately leading to increased advertiser spending. This environment suggests that now, following Zuckerberg’s bold predictions, might be an optimal moment to buy Meta shares and hold on for the unfolding growth.
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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.