Business · CNBC Technology
Meta's new AI model indicates early promise, but investors want to see Zuckerberg's strategy
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With Mark Zuckerberg counting on Meta's new artificial intelligence model, Muse Spark, to revive his company's standing in the booming AI market, guidance and commentary are going to be of heightened importance following first-quarter earnings on Wednesday.
Key facts
- Analysts expect year-over-year revenue growth of 31% for the first quarter to $55.6 billion, according to LSEG
- But Wall Street has been looking for momentum in AI beyond advertising, as OpenAI and Anthropic have seen their combined valuations swell past $1 trillion thanks to the popularity of their AI models
- The company said Thursday that it would lay off 10% of its workforce, about 8,000 employees, on May 20, in an effort to improve business efficiencies
- When Meta revealed Muse Spark earlier this month, it was pitched as the first major AI model to be spawned from Meta Superintelligence Labs, led by Alexandr Wang, the company's chief AI officer
Summary
That's because the new model, formerly codenamed Avocado, was unveiled in early April, as the second quarter was getting underway. Meta indicated that it eventually wants to make money from the technology by offering paid access to developers, similar to the approach being pursued by OpenAI, Anthropic and Google. AI, a site that tracks quality and performance of the top models, Meta AI trails Anthropic's Claude and Google's Gemini in text, but only Claude in vision, as of Sunday. In a report to clients last week, analysts at Citizens described AI as a "complementary good" for Meta, and said they expect to hear much more on the company's earnings call.