Meta is launching new AI tools for advertisers, allowing businesses to generate marketing materials using the company’s artificial intelligence. This includes image and text generation features that can help businesses create ad headlines and copy, with the ability to customize images based on text prompts. The company has announced increased funding for AI innovation during its latest earnings call, with plans to invest $5 billion more than initially planned by the end of this year. Despite this investment, Meta’s stock dropped by 15% after the announcement.
The focus on AI at Meta has raised questions about its profitability, with experts comparing it to past technology shifts such as the transition from on-prem to the cloud or from desktop to mobile. Muddu Sudhakar, CEO of generative AI company Aisera, emphasized the importance of AI for megatech companies like Meta and highlighted the billions of dollars being invested in AI innovation by these companies. The launch of these new AI tools shows that Meta is committed to staying ahead of the curve in terms of technology and innovation.