Will META Emerge Victorious in the AI Wars?
The AI wars are heating up.
And by the look of things, Mark Zuckerberg is intent on emerging as the winner in the AI wars.
As we noted last month, Apple has bailed on the AI revolution, making no mention of the technology at its WWDC in June. This means that the AI wars are now between Meta (META), Microsoft (MSFT)/ ChatGPC and Alphabet (GOOGL). Obviously, we’re not psychic and can’t predict who will win this race, but META is certainly proving to be the most aggressive player in terms of spending capital and poaching talent.
We’ve previously noted that META CEO Mark Zuckerberg has:
- Declared that AI leadership is effectively a “winner takes all” situation.
- Has allocated $15 billion to a partnership with Scale AI (this is the second largest deal in META’s history only behind its $19 billion acquisition of Whatsapp).
- Is personally hiring team members for META’s superintelligence project with compensation packages as high as NINE figures.
We can now add “poached Apple’s top AI Models executives” to the list. Bloomberg reports that META just hired Apple’s AI Models chief, Ruoming Pang, signed on with META to the tun of TENS OF MILLIONS OF DOLLARS. Zuckerberg was personally involved in the hire.
Again, Zuckerberg is not fooling around. Having struck out in spectacular fashion on the metaverse (burning through billions of dollars in the process), he’s going all in on META’s AI prospects as if his ego depends on it.
The market seems to be anticipating this… META is within spitting distance of its al-time highs. And the focus on AI is driving much of this price action. By way of contrast, AAPL, which has largely given up on the AI race is up only 5% (on par with the S&P 500).
This just confirms that AI remains the largest driver of price action in Big Tech. Those companies that continue to compete in the AI race are leading the overall market, while those that aren’t are getting left behind.
So if you feel as if you’ve missed out on this investing theme, do not despair… there is still a LOT of money to be made from investing in the AI space.
On that note, we just published a new special investment report The AI Plays Your Broker Doesn’t Know About that details three unique investments designed to profit from the next round of the AI revolution. Best of all, Wall Street has little to no idea these companies even exist, let alone their potential.
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Best Regards
Graham Summers, MBA
Chief Market Strategist
Phoenix Capital Research