2024-01-19 19:54:00
CEO of Meta META PLATFORMS +1.95% Close:0 Open:379.23 High:383.99 Low:377.97 Turnover:– Page Quote News Graphs Company Profile Recommendations More articles on the subject: Mark Zuckerberg said last night on Instagram that the company will have 350,000 processors Graphics (GPU) Model H100 by NVIDIA NVIDIA COR +3.36% Close:0 Open:580 High:591.84 Low:572.25 Cycle:– Page Quote News Graphs Company profile Recommendations Additional articles on the subject: and in total almost 600,000 graphics processors, where 250,000 processors will have computing power similar to H100 by the end of this year
“Our long-term vision is to build general intelligence, develop it responsibly, and make it widely available so everyone can benefit,” Zuckerberg wrote. “We’re building a massive computing infrastructure to support our future roadmap” for artificial intelligence. The Meta CEO also said he was excited about the company’s progress in integrating AI technology into other products such as its smart sunglasses.
Many startups and companies want to purchase Nvidia’s GPUs because they are considered the best for training models and running artificial intelligence applications. Meta refrained from specifying when the company will purchase the graphics processors and whether the other processors that Meta plans to purchase will also be from Nvidia or from other companies.
The H100 is currently Nvidia’s leading GPU for data centers and costs about $25,000 per unit, according to a presentation published by the chip company, a system containing 16 H100 graphics processors costs $400,000. However, it is not known at what price Meta will purchase the processors. A purchase of 350,000 processors at $25,000 per unit would amount to nearly $9 billion. Since the company buys a huge amount of processors, the price may be lower per unit.
The change of meta
Meta ended 2023 with a much better performance than 2022. The company’s CEO, Mark Zuckerberg, called last year an “efficiency year” after Meta cut thousands of jobs. Since November 2022, the company has cut about 21,000 jobs , as part of its attempts to reassure investors, and to show them that it is reining in costs, against the backdrop of the decline in revenue growth, the high inflation environment and fears of significant losses in the Metaverse division.
In addition, the company moved away from the metaverse in favor of the world of AI. The AI is expected to help Meta improve user engagement on the company’s Facebook, Instagram and WhatsApp platforms with content recommendations, which is expected to provide ongoing advertising revenue. At the company’s annual investor conference, it launched new meta features such as editing and redesigning photos with the help of AI, a new AI-based personal assistant (similar to Apple’s Siri) and a number of new AI-based features that will help individuals and businesses promote themselves in the business and virtual space, and this is just the beginning. The company plans to continue integrating artificial intelligence into all of its products and for that it will need a lot of processing power.
The reports for the third quarter
In its reports for the third quarter, Meta surpassed analysts’ forecasts. According to the reports, the company recorded a net profit of 4.39 dollars per share (compared to an expectation of 3.61 dollars per share, a 168% increase compared to last year), and revenues of 34.15 billion dollars (compared to an expectation of 33.56 billion and a jump of 23%), with most of the revenue, almost 34 A billion dollars, comes from the apps (Facebook, WhatsApp, Instagram, Messenger).
However, the stock also posted a profit warning. During the earnings call, the company’s CFO revealed that there is weaker demand for advertising so far in the fourth quarter. Susan Lee said that there was a “certain softening” in demand for advertising at the beginning of the fourth quarter, which may be related to global events, including recent developments in Israel.
And what about the forecast? Meta expects fourth-quarter revenue of between $36.5 billion and $40 billion, in line with Wall Street’s forecast of $38.7 billion.
The number of active app users increased by 7% to 3.96 billion. The number of daily active users increased to 3.14 billion (a 7% improvement). The number of monthly users on Facebook stands at 3.05 billion (an increase of 3%) and the number of daily users at 2.09 billion (an increase of 5%). Advertising revenues jumped 23.5% to $33.64 billion. The operating profit jumped to 40% – doubling from the corresponding quarter last year, which reflects the company’s “year of efficiency” in which it decided to cut costs. Costs and expenses decreased by 7%, while the number of employees at the end of the quarter was 66,185, a decrease of 24%.
The company trades at a value of 978.8 billion dollars, this after the company’s stock increased by 7.5% since the beginning of the year and jumped by 186% in the last year as a whole.
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