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Meta Platforms (META) shares are under pressure after The Wall Street Journal reported the tech giant is delaying the rollout of its flagship AI model, Behemoth.
Julie Hyman and Josh Lipton break down the latest on Market Domination.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
Breaking news. Meta is delaying the rollout of its flagship AI model. That's according to the Wall Street Journal. Facebook's parent company has issued some internal concerns about the direction of its multi-billion dollar AI investments. Company engineers reportedly struggling struggling to significantly improve the capabilities of its behemoth large language model. Shares taking a leg lower on this because obviously, Meta and many of these other companies have poured enormous resources into this. In particular, Meta is planning $72 billion in CAPEX this year. A large chunk of that on data center build out and resources devoted to AI. Um and Josh, there is sort of this seeming AI arms race, right? The likes of Apple have gotten dinged because they haven't been, you know, sort of as fast enough with the the sort of AI capabilities as people wanted. Meta has gotten high marks for its its progress so far. So this feels like a setback.
Yeah, I mean we've had any number of metabos who've come on and it's often the point they make is they often have high praise for Zuckerberg and meta and the way they've kind of positioned the company in this broader AI market. They've spent a lot of money to do that, as you know, 72 billion capex this year to kind of make good on Zuckerberg's hopes and dreams and ambitions for the company. Just per the journal which has this story, um they're saying Zuckerberg and other meta execs haven't publicly committed to a timeline for Behemoth, that the company they say could ultimately decide to release behemoth sooner than expected. We'll see. They doesn't sound like at this point the the company's commenting.
Yes, we'll see what ends up happening.