Tech stocks trade at mad p/e ratios compared to other companies because investors are imagining a future where the company's revenue keeps going up and up.
One of the CEO's many jobs is to ensure investors keep fantasising. There doesn't have to be revenue today, you've just got to be at the forefront of the next big thing.
So I assume the strategy here is basically: Release models -> Lots of buzz in tech circles because unlike google's stuff people can actually use the things -> Investors see Facebook is at the forefront of the hottest current trend -> Stock price goes up.
At the same time, maybe they get a model that's good at content moderation. And maybe it helps them hire the top ML experts, and you can put 60% of them onto maximising ad revenue.
And assuming FB was training the model anyway, and isn't planning to become a cloud services provider selling the model - giving it away doesn't really cost them all that much.
> * How Meta AI strategy funnels devs/customers into its Meta-verse
The metaverse has failed to excite investors, it's dead. But in a great bit of luck for Zuck, something much better has shown up at just the right time - cutting edge ML results.
Tech stocks trade at mad p/e ratios compared to other companies because investors are imagining a future where the company's revenue keeps going up and up.
One of the CEO's many jobs is to ensure investors keep fantasising. There doesn't have to be revenue today, you've just got to be at the forefront of the next big thing.
So I assume the strategy here is basically: Release models -> Lots of buzz in tech circles because unlike google's stuff people can actually use the things -> Investors see Facebook is at the forefront of the hottest current trend -> Stock price goes up.
At the same time, maybe they get a model that's good at content moderation. And maybe it helps them hire the top ML experts, and you can put 60% of them onto maximising ad revenue.
And assuming FB was training the model anyway, and isn't planning to become a cloud services provider selling the model - giving it away doesn't really cost them all that much.
> * How Meta AI strategy funnels devs/customers into its Meta-verse
The metaverse has failed to excite investors, it's dead. But in a great bit of luck for Zuck, something much better has shown up at just the right time - cutting edge ML results.