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Does anyone understand how Meta is able to spend so much money on AI with basically no AI product to speak of? Especially after sinking billions of dollars into

Does anyone understand how Meta is able to spend so much money on AI with basically no AI product to speak of? Especially after sinking billions of dollars into a failed VR product? I just don't really understand why they are investing in data centers, I don't know of any actual product they offer that anyone is seriously considering using in the space.

sandworm101 4mo ago
They will sell the capacity to others. And building data centers let's them leverage local tax advantages/incentives.
zipy124 4mo ago
There are many uses for AI other than selling API/chat access. For Meta it can be for example use internally as a software tool, in the same way that they have their own datacenters instead of running on AWS. They can also use them to power recommendation algorithms to increase time on platform. Or they can use them to better target adverts and thus increase the revenue from ads. They can also use them to help people make ads on their platforms etc....
- AtlasBarfed 4mo ago
  But if cacebook has aws class data centers for their IT, and anthropic level AI for their programmers.... .... Why keep that only in house and why not make competitive public companies?
SoKamil 4mo ago
They are using the same infinite money glitch as Google - ads revenue.
magicmicah85 4mo ago
The market forgives misadventures cause Meta is still solvent and they make money YoY. Additionally, they are developing heavily in the AI space with making Llama available to the public and all the AI integrations into their products.
btbuildem 4mo ago
Internal use to watch everything and control everything
tyre 4mo ago
Imagine buying ad space on their platforms, but instead of writing copy and providing images, you simply give it your website. Then they generate unique copy and images for each user (or hyper-targeted bucket of users), tailored to what would make them click. All continuously A/B tested.
- bulder 4mo ago
  I'm imagining it, and it'd at best be the same as if you gave your website to an ad sales agent without any instructions as to what your actual product or target audience is. At worst it'd be writing copy that is fully fabricated, doesn't match your brand language, and opens you up for false advertising claims.
Danox 4mo ago
Because Zuckerberg is the king and has complete control, but Meta is so far behind in this so-called AI model race it will be canceled quietly. It will just be but a footnote in about 2 to 3 years.
rchaud 4mo ago
They're not using their money, they're borrowing it and using Special Purpose Vehicles to book the debt so it doesn't hit their own balance sheet.
- kamranjon 4mo ago
  Can you tell me more about this?
- jocaal 4mo ago
  It will hit their balance sheet. For the debt to get the credit rating they want, facebook must commit to spending money on whatever the special purpose vehicle is doing.
petre 4mo ago
Who cares about them, at least maybe there might be another viable nuclear reactor after they throw a lot of money at it. They lost money on dumb stuff: the metaverse, VR. By all means, throw money at a few nuclear reactors, at least those are useful to keep the lights on. They probably want to better target ads and generate outrage slop with AI. That was always the plan: spy on people, make them unhappy, sell ads and maybe also provide the means to scoundrels to scam the elderly in the process.
halJordan 4mo ago
Meta uses its ai products internally. I can't actually go read the reporting for you where they've talked about, but they talk about it regularly.
giobox 4mo ago
> with basically no AI product to speak of? I don't use Meta products regularly, but they've crowbarred the "Meta AI" feature into everything - FB Messenger, Whatsapp, Instagram... There's even a standalone website to chat with the Meta AI model similar to chatgpt: > https://www.meta.ai/ https://www.meta.ai/ I'm certainly prepared to agree that they don't have a huge amount of traction or marketshare, but they absolutely have already built AI products and they exist. Outside of their own consumer products, there's the family of llama models too etc.
- JumpCrisscross 4mo ago
  Meta has, to my understanding, been quite successfully deploying AI towards its ad business [1]. The consumer-facing stuff isn’t the point. [1] https://business.meta.com/ https://business.meta.com/
rsynnott 4mo ago
I mean, say what you want about Facebook, but no-one could accuse it of being bad at spending money on stupid stuff. It is kind of its thing.

sandworm101 4mo ago

They will sell the capacity to others. And building data centers let's them leverage local tax advantages/incentives.

zipy124 4mo ago

There are many uses for AI other than selling API/chat access. For Meta it can be for example use internally as a software tool, in the same way that they have their own datacenters instead of running on AWS. They can also use them to power recommendation algorithms to increase time on platform. Or they can use them to better target adverts and thus increase the revenue from ads. They can also use them to help people make ads on their platforms etc....

AtlasBarfed 4mo ago
But if cacebook has aws class data centers for their IT, and anthropic level AI for their programmers.... .... Why keep that only in house and why not make competitive public companies?

SoKamil 4mo ago

They are using the same infinite money glitch as Google - ads revenue.

magicmicah85 4mo ago

The market forgives misadventures cause Meta is still solvent and they make money YoY. Additionally, they are developing heavily in the AI space with making Llama available to the public and all the AI integrations into their products.

btbuildem 4mo ago

Internal use to watch everything and control everything

tyre 4mo ago

Imagine buying ad space on their platforms, but instead of writing copy and providing images, you simply give it your website. Then they generate unique copy and images for each user (or hyper-targeted bucket of users), tailored to what would make them click. All continuously A/B tested.

bulder 4mo ago
I'm imagining it, and it'd at best be the same as if you gave your website to an ad sales agent without any instructions as to what your actual product or target audience is. At worst it'd be writing copy that is fully fabricated, doesn't match your brand language, and opens you up for false advertising claims.

Danox 4mo ago

Because Zuckerberg is the king and has complete control, but Meta is so far behind in this so-called AI model race it will be canceled quietly. It will just be but a footnote in about 2 to 3 years.

rchaud 4mo ago

They're not using their money, they're borrowing it and using Special Purpose Vehicles to book the debt so it doesn't hit their own balance sheet.

kamranjon 4mo ago
Can you tell me more about this?
jocaal 4mo ago
It will hit their balance sheet. For the debt to get the credit rating they want, facebook must commit to spending money on whatever the special purpose vehicle is doing.

petre 4mo ago

Who cares about them, at least maybe there might be another viable nuclear reactor after they throw a lot of money at it. They lost money on dumb stuff: the metaverse, VR. By all means, throw money at a few nuclear reactors, at least those are useful to keep the lights on. They probably want to better target ads and generate outrage slop with AI. That was always the plan: spy on people, make them unhappy, sell ads and maybe also provide the means to scoundrels to scam the elderly in the process.

halJordan 4mo ago

Meta uses its ai products internally. I can't actually go read the reporting for you where they've talked about, but they talk about it regularly.

giobox 4mo ago

> with basically no AI product to speak of? I don't use Meta products regularly, but they've crowbarred the "Meta AI" feature into everything - FB Messenger, Whatsapp, Instagram... There's even a standalone website to chat with the Meta AI model similar to chatgpt: > https://www.meta.ai/ https://www.meta.ai/ I'm certainly prepared to agree that they don't have a huge amount of traction or marketshare, but they absolutely have already built AI products and they exist. Outside of their own consumer products, there's the family of llama models too etc.

JumpCrisscross 4mo ago
Meta has, to my understanding, been quite successfully deploying AI towards its ad business [1]. The consumer-facing stuff isn’t the point. [1] https://business.meta.com/ https://business.meta.com/

rsynnott 4mo ago

I mean, say what you want about Facebook, but no-one could accuse it of being bad at spending money on stupid stuff. It is kind of its thing.