Meta Stock Soars As Company Challenges Open AI With New Launch

Meta Stock is up on the back of the company’s announcement to launch a new AI model, challenging Open AI’s dominance in the artificial intelligence (AI) sector. The stock has performed impressively this year and has continued to hit new highs. Meta’s performance this year also recently led to the company’s founder, Mark Zuckerberg, surpassing Jeff Bezos as the second richest person in the world.

Meta Stock Soars Following Reveal Of New AI Model

Nasdaq data shows that the stock has surged following the company’s reveal of its AI model. This is significant as it is set to position Meta as a leader in the AI sector while also challenging Open AI’s dominance in the industry.

The stock has already performed impressively since the start of the year, with a year-to-date (YTD) gain of over 65%. As such, the launch of the new AI model would only provide a more bullish momentum for the Meta Stock.

Per the Reuters report, the new AI model called Movie Gen can create seemingly real videos and audio clips based on prompts given by the user. This tool is meant to rival ones from leading AI startups like OpenAI and Eleven Labs.

Meta also highlighted in a blog post how the Movie Gen could usher in a new AI-enabled era for content creators. The AI tool basically has four capabilities: video generation, personalized video generation, precise video editing, and audio generation. The company revealed that they have trained these AI models with both licensed and publicly available datasets.

This announcement came just after Meta’s founder, Mark Zuckerberg, shared his company’s key AI vision at the “Meta Connect” event. The company’s decision to venture into the AI industry is undoubtedly paying off, considering how the Meta stock has performed this year. The stock’s performance has also boosted Zuckerberg’s net worth, which has led to the Meta founder surpassing Jeff Bezos to become the world’s richest person.

Open AI Also Making Moves Of Theirs

Amid the Meta stock performance and the company’s venture into the AI industry, Open AI has also been making moves to solidify its dominance in the AI industry. The startup recently pulled $6.6 billion in funding as its valuation has reached $157 billion. Open AI is receiving backing from Wall Street giants, like Cathie Wood’s Ark Invest.

The asset manager contributed about $250 million to the $6.6 billion capital raise. As a result, the AI firm is now Ark Invest’s third-largest investment. Meanwhile, there is the possibility that Open AI could go public soon enough. Dan Primack, a business editor at Axios, told CNBC that he believes that an IPO is inevitable.

He remarked that the new funding Open AI received was a huge amount of money for a private company. However, he believes that they would need more to fund their projects, and the public market is the place to find that.

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Boluwatife Adeyemi

Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.

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