Now your second question was around the 2024 outlook. And we obviously have not shared any guidance beyond Q1. But our revenue for the full year is going to be influenced by a number of factors, including macro conditions that are certainly harder to predict the further out you go. And over the course of 2024, as you said, we’ll also be lapping periods of increasingly strong demand. So we don’t provide guidance beyond Q1. There’s certainly a range of outcomes, and we’ll have a better read on how we will compare to future quarters as we progress through the year.
Operator: Your next question comes from the line of Doug Anmuth from JPMorgan.
Doug Anmuth: One for Mark, one for Susan. Mark, I believe you’d shifted FAIR out of Reality Labs into the Family of Apps. Can you just talk about some of the benefits there of moving that group as you pursue general intelligence? And then Susan, can you just walk us through your thought process on adding a dividend to your capital returns at this stage beyond the share repurchases?
Mark Zuckerberg: I can talk to the first one. Yes, the whole reason why we moved FAIR is basically to be closer to the GenAI group. They’re both research groups. The GenAI group basically builds our Llama launch vehicles and products, but also conducts a fair amount of research, too, especially things that are going to be coming into the upcoming versions of Llama. FAIR is focused on more foundational work and longer-term work. So it’s, I’d say, more things that might be a couple of years out to 10-plus years out. And as we — I guess, here’s one way to think about it. A lot of last year and the work that we’re doing with Llama 3 is basically making sure that we can scale our efforts to really produce state-of-the-art models.
But once we get past that, there’s a lot more kind of different research that I think we’re going to be doing that’s going to take our foundation models in potentially different directions than other players in the industry are going to go in because we’re focused on specific vision for what we’re building. So it’s really important as we think about what’s going to be in Llama 5 or 6 or 7 and what cognitive abilities we want in there and what modalities we want to build into future multimodal versions of the models. We need to be doing that work in advance and to research those things. And it helps to — and even though FAIR and GenAI will continue to be 2 kind of separate groups on different time horizons. I think to have some level of alignment between — on the vision of what we’re building between the 2 of them, so that way, the FAIR team can have in mind, hey, if we research this, then maybe it can intercept Llama 6 or something.
Then that, I think, is just going to be more helpful for increasing the ambition and focus of all of the work that we do. It’s one of the reasons that I talked about. We did open-ended research on AI for a while. But having a clear product target with these AI agents, I think, is really going to help focus the work and give us a feedback loop that’s going to increase the productivity and output that we get dramatically.
Susan Li: Doug, on your second question about why now in terms of initiating a dividend, returning capital to shareholders remains an important priority for us. And we believe introducing a dividend really just serves as a nice complement to the existing share repurchase program. The dividend doesn’t change how much we will be — or it doesn’t change the way we determine the total amount of capital we return. And we expect that share repurchases will continue to be the primary way that we return capital to shareholders. But introducing a dividend just gives us a more balanced capital return program and some added flexibility in how we return capital in the future.
Operator: Your next question comes from the line of Ron Josey from Citi.
Ronald Josey: Mark, I hope your knee is getting better. I wanted to ask you about Apple opening up its App Store in Europe and maybe what role that might play for Meta in further building out the App Store app install ads and things along those lines. And Susan, as a follow-up to maybe a prior question, you mentioned the potential around business messaging and the team — what the team is doing around really testing with WhatsApp and Messenger. Just talk just how you might see this unfold maybe with AI Studio and maybe timing would be helpful.
Mark Zuckerberg: I don’t think that the Apple thing is going to have any difference for us because I think that the way that they’ve implemented it, I would be very surprised if any developer chose to go into the alternative App Stores that they have. They’ve made it so onerous, and I think so at odds with the intent of what the EU regulation was that I think it’s just going to be very difficult for anyone, including ourselves, to really seriously entertain what they’re doing there. Susan, did you want to add anything?
Susan Li: No. I was going to take the second question, I think, which was around the rollout of some of the GenAI features from a monetization perspective. And we’re — first of all, I would say that we don’t expect our GenAI products to be a meaningful 2024 driver of revenue. But we certainly expect that they will have the potential to be meaningful contributors over time. Right now, the most near-term monetization opportunity is with our ad creative tools. We’ve talked about some of the places that we’ve been rolling those features out broadly with Text Variations and Image Expansion now globally available. And we’re seeing those tools receive adoption and provide real value for advertisers even at this early stage. And we’re going to keep investing in making those more useful and performant, which then leads to more advertiser adoption, and that can be sort of a virtuous feedback loop.
Over a longer time frame, the GenAI features that we’re bringing to business messaging, which I think was where your question originated, we think really represents a compelling opportunity. We’re testing AI chats on a very small scale today with a few businesses, but it will take time to continue making those AIs increasingly useful. We’re hearing good feedback from the businesses testing them, and we expect to make progress this year as we expand our tests further. I’d say one other thing is just on the consumer side, again, we think GenAI can make it easier for people to produce compelling content across all of our apps, including our messaging apps. And our AI assistant certainly provides also added utilities. So in all of these areas, I would say, we’re following our typical playbook of testing and tuning the experiences until they’re very good, and then we’ll invest in growth and eventually explore monetization.
Operator: Your last question comes from the line of Ross Sandler from Barclays.
Ross Sandler: Mark, just curious what you’re seeing with Meta AI at this stage. You talked about rapid iteration of that, given your large audience. So yes, I guess, what’s going on, thus far? Which of the apps in the Family of Apps have seen engagement increase from Meta AI? And do you think that there could be increased commercial activity as either your AI agent or some of the other ones out there get more usage within your apps?
Mark Zuckerberg: Yes. I think having a good assistant is going to be one of the real values that this generation of AI creates as well as giving every creator an opportunity to have an assistant or agent that people can engage with and every business and agent and also allowing people to create a bunch of quirky and fun things as well. But yes, I think Meta AI is going to be very important across the product. It currently is available in some countries in WhatsApp, Messenger and Instagram. It’s at the phase where we’re not really pushing it super proactively. We’ve sort of made it available, and as people use it, we’re learning from how — what are the basic ways that people want to engage with it. We’re currently in the tuning phase on this.
