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Rani Molla

Zuckerberg: AI might be a bubble but “misspending a couple of hundred billion” is worth it to achieve superintelligence

“It’s quite possible” that AI is a bubble, Meta CEO Mark Zuckerberg told tech journalist Alex Heath, formerly of The Verge, on his new podcast, “Access,” and for his newsletter, Sources. That isn’t stopping Zuckerberg’s social media company from going all in on AI in hopes of achieving superintelligence, aka AI that’s smarter than humans.

“If we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously,” said Zuckerberg, who’s shelling out $600 billion on US data centers and infrastructure through 2028. “But what I’d say is I actually think the risk is higher on the other side.”

“The risk, at least for a company like Meta, is probably in not being aggressive enough rather than being somewhat too aggressive,” he added.

“If we end up misspending a couple of hundred billion dollars, I think that that is going to be very unfortunate, obviously,” said Zuckerberg, who’s shelling out $600 billion on US data centers and infrastructure through 2028. “But what I’d say is I actually think the risk is higher on the other side.”

“The risk, at least for a company like Meta, is probably in not being aggressive enough rather than being somewhat too aggressive,” he added.

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Meta projected 10% of 2024 revenue came from scams and banned goods, Reuters reports

Meta has been making billions of dollars per year from scam ads and sales of banned goods, according internal Meta documents seen by Reuters.

The new report quantifies the scale of fraud taking place on Meta’s platforms, and how much the company profited from them.

Per the report, Meta internal projections from late last year said that 10% of the company’s total 2024 revenue would come from scammy ads and sales of banned goods — which works out to $16 billion.

Discussions within Meta acknowledged the steep fines likely to be levied against the company for not stopping the fraudulent behavior on its platforms, and the company prioritized enforcement in regions where the penalties would be steepest, the reporting found. The cost of lost revenue from clamping down on the scams was weighed against the cost of fines from regulators.

The documents reportedly show that Meta did aim to significantly reduce the fraudulent behavior, but cuts to its moderation team left the vast majority of user-reported violations to be ignored or rejected.

Meta spokesperson Andy Stone told Reuters the documents were a “selective view” of internal enforcement:

“We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either.”

Per the report, Meta internal projections from late last year said that 10% of the company’s total 2024 revenue would come from scammy ads and sales of banned goods — which works out to $16 billion.

Discussions within Meta acknowledged the steep fines likely to be levied against the company for not stopping the fraudulent behavior on its platforms, and the company prioritized enforcement in regions where the penalties would be steepest, the reporting found. The cost of lost revenue from clamping down on the scams was weighed against the cost of fines from regulators.

The documents reportedly show that Meta did aim to significantly reduce the fraudulent behavior, but cuts to its moderation team left the vast majority of user-reported violations to be ignored or rejected.

Meta spokesperson Andy Stone told Reuters the documents were a “selective view” of internal enforcement:

“We aggressively fight fraud and scams because people on our platforms don’t want this content, legitimate advertisers don’t want it, and we don’t want it either.”

$350B

Google wants to invest even more money into Anthropic, with the search giant in talks for a new funding round that could value the AI startup at $350 billion, Business Insider reports. That’s about double its valuation from two months ago, but still shy of competitor OpenAI’s $500 billion valuation.

Citing sources familiar with the matter, Business Insider said the new deal “could also take the form of a strategic investment where Google provides additional cloud computing services to Anthropic, a convertible note, or a priced funding round early next year.”

In October, Google, which has a 14% stake in Anthropic, announced that it had inked a deal worth “tens of billions” for Anthropic to access Google’s AI compute to train and serve its Claude model.

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