Mark Zuckerberg reveals thoughts on DeepSeek as Meta's AI spending under scrutiny
Chinese startup DeepSeek’s launch of its latest AI models triggered a selloff in global tech stocks this week on concerns about rising AI costs in the US.
Meta Platforms’ fourth-quarter revenue beat Wall Street expectations on Wednesday, but the company predicted sales in the current first quarter may not meet forecasts, sending mixed signals about how bets on pricey artificial intelligence-powered tools are paying off.
The Facebook and Instagram parent company expects first quarter revenue between $39.5 billion and $41.8 billion, compared with analysts’ average estimate of $41.72 billion, according to data compiled by LSEG.
Meta shares were flat after the market closed but rose as CEO Mark Zuckerberg spoke optimistically about Meta’s AI initiatives and the company’s conviction that open source AI is the right strategy after a Chinese company launched DeepSeek open source AI, which tanked global markets.
“There’s going to be an open source standard globally,” Zuckerberg said on a conference call. “It’s important that it’s an American standard.”
The forecast raised fresh questions about Meta’s capital spending. The company relies on its core social media ads business to cover the costs associated with its AI ambitions and investments in “metaverse” technologies like smart glasses and augmented reality systems.