"Mark Zuckerberg's Meta is spending untold billions on infrastructure and top talent for its AI ambitions. In fact, the CEO announced during the company's earnings call on Wednesday, Meta will be spending between $70 billion and $72 billion on AI this year - up from its previous estimate of $66 billion to $72 billion, as CNBC reports. Unsurprisingly, that cash bonfire isn't going over well with investors."
""They have to start doing a better job of showing us when that comes back to the balance sheet." Mulberry questioned Meta's ability to turn its ballooning expenditures into a return on investment. "The return on invested capital is definitely a huge metric for us and the fact that they are being a little bit cagey and not quite upfront with what exactly is going on doesn't help soothe those fears," he told the WSJ."
Meta plans to spend between $70 billion and $72 billion on AI this year, increasing its prior projection. The spending targets fund infrastructure and top talent for AI development. Investors reacted negatively, driving Meta shares down more than 11 percent despite revenues beating Wall Street estimates. Portfolio manager Brian Mulberry expressed concern about the absolute dollar spend and questioned Meta’s ability to convert large expenditures into returns. Competitors including Alphabet and Microsoft are also escalating AI spending, raising concerns about a potential AI spending bubble and broader economic risk.
Read at Futurism
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