{"id":120428,"date":"2024-10-31T11:42:46","date_gmt":"2024-10-31T04:42:46","guid":{"rendered":"https:\/\/hotvideos24.online\/?p=120428"},"modified":"2024-10-31T11:42:46","modified_gmt":"2024-10-31T04:42:46","slug":"metas-mark-zuckerberg-seems-surprised-by-pace-of-spending-on-ai","status":"publish","type":"post","link":"https:\/\/hotvideos24.online\/?p=120428","title":{"rendered":"Meta&#8217;s Mark Zuckerberg seems surprised by pace of spending on AI"},"content":{"rendered":"<p> <script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<\/p>\n<div id=\"RegularArticle-ArticleBody-5\" data-module=\"ArticleBody\" data-test=\"articleBody-2\" data-analytics=\"RegularArticle-articleBody-5-2\"><span class=\"HighlightShare-hidden\" style=\"top:0;left:0\"\/><\/p>\n<div class=\"InlineImage-imageEmbed\" id=\"ArticleBody-InlineImage-108043098\" data-test=\"InlineImage\">\n<div class=\"InlineImage-wrapper\">\n<div>\n<p>Mark Zuckerberg, CEO of Meta Platforms Inc., arrives for the Meta Connect event in Menlo Park, California, on Sept. 25, 2024.<\/p>\n<p>David Paul Morris | Bloomberg | Getty Images<\/p>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p><em><br \/><\/em><span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-1\"><a href=\"https:\/\/www.cnbc.com\/quotes\/META\/\">Meta<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> has been so quick to build out its massive data center and computing infrastructure for artificial intelligence projects that CEO <a href=\"https:\/\/www.cnbc.com\/mark-zuckerberg\/\">Mark Zuckerberg<\/a> is even a bit surprised.<\/p>\n<p>In a call with analysts on Wednesday after Meta&#8217;s <a href=\"https:\/\/www.cnbc.com\/2024\/10\/30\/meta-q3-earnings-report-2024.html\">third-quarter earnings<\/a> report, Zuckerberg explained to investors how Meta&#8217;s rising costs for the year are tied to the speed at which employees are able to get data centers, servers and chips for AI up and running. <\/p>\n<p>&#8220;Going into the year, we had a range for what we thought we could potentially do, and we&#8217;ve been able to do more than we&#8217;ve kind of hoped and expected at the beginning of the year,&#8221; Zuckerberg said. <\/p>\n<p>It also means investors have to buckle up for higher expenses. Meta raised the low end of its capital expenditures guidance for 2024 to $38 billion from $37 billion. The top end is still $40 billion. <\/p>\n<p>&#8220;It&#8217;s actually something that I&#8217;m quite happy that the team is executing well on,&#8221; Zuckerberg said. &#8220;That execution makes me somewhat more optimistic that we&#8217;re going to be able to keep on building this out at a good pace.&#8221;<\/p>\n<p>Meta added that the expenditures, which include purchases of <a href=\"https:\/\/www.cnbc.com\/2024\/01\/18\/mark-zuckerberg-indicates-meta-is-spending-billions-on-nvidia-ai-chips.html\">billions of dollars<\/a>\u00a0worth of\u00a0<a href=\"https:\/\/www.cnbc.com\/quotes\/NVDA\/\">Nvidia&#8217;s<\/a> graphics processing units, will grow significantly in 2025.<\/p>\n<p>Meta shares dipped in extended trading on Wednesday despite the company beating on earnings and revenue. Weaker-than-expected user growth was part of the concern, along with rising costs. <\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108054365\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108054365\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000356247\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108054366-17302217361730221734-36888702423-1080pnbcnews.jpg?v=1730221735&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Final Trades: Meta, Delta Air Lines and Star Bulk Carrier\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"group\">\n<p>On the earnings call, Barclays analyst Ross Sandler asked Zuckerberg how quickly Meta can build the immense computing infrastructure needed to reach its goals around generative AI, given possible barriers like <a href=\"https:\/\/www.cnbc.com\/2024\/10\/15\/big-tech-turns-to-nuclear-energy-to-fuel-power-intensive-ai-ambitions.html\">energy requirements<\/a> and the time needed to develop its own custom <a href=\"https:\/\/www.cnbc.com\/2023\/05\/18\/meta-pulls-the-curtain-back-on-its-ai-chips-for-the-first-time.html\">AI-specific chips<\/a>.<\/p>\n<p>Zuckerberg responded by complimenting Meta&#8217;s infrastructure team, which he said was &#8220;executing quite well&#8221; in building out more computing capacity for various AI projects like the <a href=\"https:\/\/www.cnbc.com\/2023\/10\/16\/metas-open-source-approach-to-ai-puzzles-wall-street-techies-love-it.html\">Llama family of large language models<\/a>.<\/p>\n<p>Wall Street has grown concerned that tech giants like Meta and <span class=\"QuoteInBody-quoteNameContainer\" data-test=\"QuoteInBody\" id=\"RegularArticle-QuoteInBody-9\"><a href=\"https:\/\/www.cnbc.com\/quotes\/GOOGL\/\">Alphabet<\/a><span class=\"QuoteInBody-inlineButton\"><span class=\"AddToWatchlistButton-watchlistContainer\" id=\"-WatchlistDropdown\" data-analytics-id=\"-WatchlistDropdown\"><button class=\"AddToWatchlistButton-watchlistButton\" aria-label=\"Add To Watchlist\" data-testid=\"dropdown-btn\"><span class=\"AddToWatchlistButton-addWatchListFromTag\"\/><\/button><\/span><\/span><\/span> are spending too much on infrastructure without seeing immediate returns. It&#8217;s a theme Zuckerberg acknowledged in an <a href=\"https:\/\/www.cnbc.com\/2024\/07\/25\/techs-splurge-on-ai-chips-has-meta-alphabet-tesla-in-arms-race.html\">interview<\/a> in July with Bloomberg, telling Emily Chang that there&#8217;s a chance that companies are &#8220;overbuilding now.&#8221; However, the risks of underinvesting are too great, he said.<\/p>\n<p>&#8220;The formula around building out the infrastructure is maybe not what investors want to hear in the near term, that we&#8217;re growing that,&#8221; Zuckerberg said on Wednesday. &#8220;But, I just think that the opportunities here are really big, we&#8217;re going to continue investing significantly in this and I&#8217;m proud of the teams that are doing great work to stand up a large amount of capacity so that way we can deliver world-class models and world-class products.&#8221;<\/p>\n<p>It&#8217;s not the only place where investors have to stomach hefty expenses.<\/p>\n<p>Meta&#8217;s Reality Labs unit, home of metaverse technologies, posted an <a href=\"https:\/\/www.cnbc.com\/2024\/10\/30\/metas-reality-labs-posts-4point4-billion-loss-in-third-quarter.html\">operating loss of $4.4 billion<\/a> in the third quarter. The company said it expects &#8220;2024 operating losses to increase meaningfully year-over-year due to our ongoing product development efforts and investments to further scale our ecosystem.&#8221;<\/p>\n<p><strong>WATCH:<\/strong> <a href=\"https:\/\/www.cnbc.com\/video\/2024\/10\/30\/meta-stock-dropping-after-earnings-wrong-reaction-says-wedbushs-dan-ives.html\">Meta stock dropping after earnings &#8220;wrong reaction.&#8221;<\/a><\/p>\n<\/div>\n<div role=\"region\" aria-labelledby=\"Placeholder-ArticleBody-Video-108055235\">\n<div role=\"button\" tabindex=\"0\" id=\"Placeholder-ArticleBody-Video-108055235\" class=\"PlaceHolder-wrapper\" data-vilynx-id=\"7000356435\" data-test=\"VideoPlaceHolder\">\n<div class=\"InlineVideo-videoEmbed\" id=\"InlineVideo-0\" data-test=\"InlineVideo\">\n<div class=\"InlineVideo-wrapper\">\n<div class=\"InlineVideo-inlineThumbnailContainer\"><img decoding=\"async\" class=\"InlineVideo-videoThumbnail\" src=\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108055236-17303217971730321790-36905767341-1080pnbcnews.jpg?v=1730321796&amp;w=750&amp;h=422&amp;vtcrop=y\" alt=\"Meta stock dropping after earnings 'wrong reaction', says Wedbush's Dan Ives\"\/><span class=\"InlineVideo-videoButton\"\/><span\/><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-3711241968723425\"\r\n     crossorigin=\"anonymous\"><\/script>\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-format=\"fluid\"\r\n     data-ad-layout-key=\"-fb+5w+4e-db+86\"\r\n     data-ad-client=\"ca-pub-3711241968723425\"\r\n     data-ad-slot=\"7910942971\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script><br \/>\n<br \/><div data-type=\"_mgwidget\" data-widget-id=\"1660802\">\r\n<\/div>\r\n<script>(function(w,q){w[q]=w[q]||[];w[q].push([\"_mgc.load\"])})(window,\"_mgq\");\r\n<\/script>\r\n<br \/>\n<br \/><a href=\"https:\/\/www.cnbc.com\/2024\/10\/30\/metas-mark-zuckerberg-seems-surprised-by-pace-of-spending-on-ai.html\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Mark Zuckerberg, CEO of Meta Platforms Inc., arrives for the Meta Connect event in Menlo Park, California, on Sept. 25, 2024. David Paul Morris | Bloomberg | Getty Images Meta &hellip; <a href=\"https:\/\/hotvideos24.online\/?p=120428\" class=\"more-link\">Read More<\/a><\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":["post-120428","post","type-post","status-publish","format-standard","hentry","category-business","entry"],"_links":{"self":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/120428","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=120428"}],"version-history":[{"count":0,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=\/wp\/v2\/posts\/120428\/revisions"}],"wp:attachment":[{"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=120428"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=120428"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/hotvideos24.online\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=120428"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}