Meta Is Betting Billions That AI Will Fix Its Advertising Business
Much of the commentary around Meta Platforms' (NASDAQ: META) disastrous third-quarter earnings report focuses on the prolific spending related to the metaverse. The Reality Labs segment, responsible for the company's virtual reality and metaverse initiatives, posted an operating loss of $3.67 billion and generated just $285 million of revenue.
Meta expects operating expenses tied to Reality Labs to surge further in 2023. This outlook is a big reason why shares of Meta had tanked more than 20% by Thursday afternoon. The company's aggressive plans to invest in its data centers got a bit less attention.
Meta needs plenty of compute capacity to handle the billions of users who scroll through Facebook and Instagram each month. But your standard data center server isn't going to be able to handle artificial intelligence (AI) workloads efficiently. Beefy graphics cards or specialized chips tailor-made for AI are required to run AI workloads at scale.
Source Fool.com
