15 AI News Investors Should Not Miss

2. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) is a social technology company that builds applications and technologies that can help people connect, find communities, as well as growing businesses. It uses artificial intelligence to help users accomplish tasks, learn, and connect. Over 400 million people use Meta AI, an intelligent assistant that is capable of following instructions, visualizing ideas, and solving nuanced problems.

AI-generated responses can be smart, but they are not always right. This is why one of the challenges in AI development remains the need for extensive human oversight, also known as Reinforcement Learning from Human Feedback (RLHF). This process often requires human annotators to verify the accuracy of AI responses. On October 18, Meta Platforms, Inc. (NASDAQ:META) announced that it will be releasing a batch of new AI models, including a “Self-Taught Evaluator”, which is a significant step towards autonomous AI that may require less human involvement in the AI development process.

Meta Platforms, Inc. (NASDAQ:META) will use the same “chain of thought” technique that is used by OpenAI’s recently released o1 models for generating reliable judgments about model responses. Researchers at Meta have used AI-generated data entirely for training the evaluator model. As per Meta researchers, the ability to use AI to evaluate AI reliably will in turn open a path towards building autonomous agents that will learn from their own mistakes.

Meta Platforms, Inc. (NASDAQ:META) has been spending massively on AI, but investors don’t hate it. The company’s second-quarter revenue hit $39 billion, surpassing Wall Street expectations. It asserts how the company’s infrastructure costs, such as the money it’s working into building its artificial intelligence capabilities, will be a “significant driver of expense growth”.

“While we continue to refine our plans for next year, we currently expect significant capital expenditures growth in 2025 as we invest to support our artificial intelligence research and product development efforts”, the company said in its earnings report.

On CNBC’s “Halftime Report Final Trades,” Jason Snipe of Odyssey Capital Advisors said that he is buying the company’s stock ahead of earnings. They are paying dividends and buying back shares, he noted. Jeffrey Wlodarczak of Pivotal Research Group is also bullish on the stock. On October 1, he stated that aside from increasing sales and income, Meta will also report cost efficiencies enabled by AI over the next few months. The company has been amongst those leading the AI charge this year, releasing the sophisticated chatbot model Llama 3 in April.