Meta Platforms (META) has announced a strategic shift in focus from its metaverse projects to artificial intelligence (AI), responding to investor pressure and industry trends favoring AI's potential. The company is reallocating capital and resources, hiring talent from competitors like OpenAI, and partnering with firms such as Scale AI, which has raised $14.3 billion.
Meta's CEO is reportedly advocating for significant cuts in metaverse spending to bolster AI-driven innovation. The company plans to integrate Google's Tensor Processing Units (TPUs) by 2027 to enhance its AI data centers, accepting short-term financial challenges for anticipated long-term benefits. Despite a positive market reaction with a rise in stock prices, analysts remain divided on the profitability of AI initiatives.
Meta Platforms Shifts Focus from Metaverse to AI Amid Investor Pressure
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