The plans of Facebook’s parent company Meta to invest heavily in artificial intelligence (AI) appear to have been met with disapproval by investors, as the company’s market value plummeted by $163 billion on Thursday.
When Mark Zuckerberg’s Meta revealed that its quarterly profits had doubled year over year while revenue had increased by 27%, the company’s stock price plummeted by 13%.
The Menlo Park, California-based tech giant intended to invest $5 billion in artificial intelligence (AI) as the worldwide race for the top spot in technology has intensified due to the participation of Microsoft, Google, OpenAI, and other well-known investors.
The technology required for such a scheme is said to be expensive and time-consuming, even if it is predicted that the investment in AI would yield enormous returns.
According to Sophie Lund-Yates, head equities analyst at Hargreaves Lansdown, “the language around spending plans has become bolder once again, and this could be what’s spooking markets,” a CNN story on Thursday quoted her as saying.
