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Meta platform CEO Mark Zuckerberg has announced it is making significant progress on its AI initiatives which are helping the company boost traffic to social media channels and earn more in ad sales.

Facebook AI Announcement Boosts Shares With Promises of More to Come

Meta, an industry leader in technology and the parent company of Facebook, Instagram, and WhatsApp, announced on Wednesday that its in-house AI tool is showing great progress by increasing social media platform traffic and boosting ad sales.

As detailed in a Reuters report, the tech and communication giant CEO Mark Zuckerberg expressed his bullish thoughts on artificial intelligence (AI) as a key player behind forecasted new quarterly revenue, which is well above initial analysts’ expectations.

Hours after the announcement, Meta shares spurted by a 12% increase, adding over $50 billion to its previous market value and an additional two 2.16% in the early hours of today.

The bull rally of Meta share is set to join fellow tech giants, such as Google and Microsoft, as they posted great results earlier this week.

With its new AI initiative, the company has narrowed its annual cost, with expenses estimated to be lesser than the earlier forecast in March.

Now on a red-hot bull rally in the stock market, Meta is set to surge past expected profit and revenue for the first time in nearly a year.

The adoption of AI by Meta into its hardware and software systems has been a long staircase walk.

Nevertheless, the tech company has strongly committed to upgrading and overhauling expenses to advance its AI initiatives and foster larger-scale innovations within the AI ecosystem.

The company had initiated a cost-cutting overhaul to trim not-so-important projects and laid off 21,000 jobs to flatten its employers and management hierarchy.

According to Zuckerberg, the layoff is geared to achieve a “year of efficiency” and refocus on what matters, which happens to be the AI industry.

Meta iterated that the use of AI to boost Instagram has resulted in a 24% increase in usability during the first quarter (January – March) of 2023.

Tech and AI experts believe Meta’s investment in artificial intelligence has been mostly geared toward the “advert” section, which may not be visible to consumers (users).

However, these tools’ advanced algorithms are undoubtedly helping the company hit specific targets in advert targeting.

As aforementioned, Meta layoffs have saved costs which will be used to navigate the AI ecosystem.

Initial investments into software technology have significantly paid off, as there’s an obvious increase in capital expenditure worth over $7.1 billion for the new quarter.

Experts believe Meta might roll out more funds to increase capital expenditures further as it builds a spate of products compatible with generative AI tools.

However, it remains a sight to behold whether Zuckerberg will merge new projects into the rearview focus of Meta for 2023.

The company has invested millions of dollars in its metaverse-powered Reality Labs unit, which resulted in a colossal loss of $13.7 billion in 2022.

Should there be a U-turn to metaverse investment, there may be funds resistance and backlash from community enthusiasts that foresighted the staggering loss of billions of dollars last year.

Although the company’s layoff initiative has freed up billions, Meta will have to pick between a continuous investment in AI or metaverse.

This sound like an easy pick, as there’s significant growth in the company’s stocks and ad sales compared to Metaverse’s loss of $13.7 billion.