Meta (META) and xAI Compete for Partnership with Character.ai
In a recent development reported by the Financial Times, Meta (NASDAQ:META) and xAI, Elon Musk’s artificial intelligence startup, are vying for a partnership with Character.ai, a company specializing in chatbots that utilize large language models (LLMs) to mimic various personas. Additionally, xAI has successfully raised $6 billion in a second round of funding.
Tech Giants Investing in AI Startups
Major tech giants like Amazon and Alphabet’s Google are increasingly investing in AI startups to bolster their AI capabilities and remain competitive in the industry. Amazon recently injected $4 billion into AI startup Anthropic, while Google has also invested in a rival firm Anthropic. Furthermore, reports suggest that Google is contemplating a significant investment in Character.ai.
Updates on xAI
xAI, in its pursuit of a partnership with Character.ai, has introduced Grok, a chatbot accessible to premium subscribers on X, Musk’s social media platform. The company has also secured $6 billion in funding from investors such as Sequoia Capital and Andreessen Horowitz to fuel the development of its products and infrastructure.
Meta’s AI Strategy and Stock Performance
Meta is heavily investing in AI technologies, incorporating generative AI capabilities and chatbots into its social media platforms. Analysts are optimistic about the potential benefits of AI-driven content on Meta’s user engagement and ad revenue. However, concerns have been raised about the company offering advanced AI models for free, impacting its stock performance.
Is Meta a Strong Investment?
Despite the uncertainties surrounding Meta’s AI strategies, Wall Street remains bullish on the stock, with a Strong Buy consensus rating and an average price target of $522.95, indicating a 9.35% upside potential from current levels. Investors are advised to closely monitor Meta’s AI initiatives and their impact on the company’s financial performance.