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Spending $15B is a risk. Yes they have the money, but we're talking a quarter of Meta's annual income. That's not nothing. And money concerns aside, Meta needs
by paxys 1y ago
Spending $15B is a risk. Yes they have the money, but we're talking a quarter of Meta's annual income. That's not nothing.
And money concerns aside, Meta needs to be a major player in AI. If they have made the wrong bet with Scale AI & Wang then the company will suffer in the long term.
- disgruntledphd2 1y agoIt's surely mostly a stock deal though, right? So they won't take the same hit to free cash flow that they might otherwise do. Still a lot of money and I'm not sure it's worth it. Might be more like Whatsapp than Instagram, tbh.
- paxys 1y agoIt's a funding round. Scale doesn't need Meta stock, they need cash to burn.
- HDThoreaun 1y agoMeta is doing $10 billion in buybacks a quarter. Cash vs stock deal doesnt make a difference I think
- coliveira 1y agoYou're thinking in the wrong scale. Meta is a $1.7T company, for them a $15B investment is less than 1% of the company. In the span of a year, this is negligible money.
- twelve40 1y ago> Meta needs to be a major player in AI Honest question, why do they so existentially need to be a major player in AI? It's a social network that connects people, serves UGC and some spam/ads, and sells advertisement. Same but with photos for IG, same but with messages for Whatsap. Which part of this will die without AI? If they are obsessed with chatting with an AI bot on Whatsapp, just plug in grok or openai like Telegram, is that the killer feature worth bazillions of dollars? (everything else seems like a failed experiment, VR, Libra, Facebook phone, whatever, nobody even remembers half these things)