Tech giant Meta is reportedly developing its AI-powered search engine to reduce reliance on existing platforms like Google and Microsoft’s Bing. The new search engine will focus on generating conversational AI summaries of recent information and current events, delivered through Meta’s AI chatbot.
Project Development
According to a report by The Information on October 28, a dedicated engineering team at Meta has been working on this project for the past eight months. The company’s goal is to build a comprehensive database of relevant information for the new search engine.
Currently, Meta’s AI chatbot, which integrates with its social media platforms such as Instagram, Facebook, and WhatsApp, relies on Google and Bing for user query responses.
Industry Context
Meta’s move aligns with similar initiatives from other major AI companies. Notably, OpenAI, led by Sam Altman, unveiled a prototype search engine named “SearchGPT” in July, with plans to integrate it into the ChatGPT chatbot.
Additionally, a Bloomberg report from October 2 highlighted Apple’s efforts to potentially replace some of Google’s search functionalities with its own AI solutions.
Partnership with Reuters
On October 25, Meta announced a multiyear partnership with news agency Reuters to incorporate AI-powered chat functions into its platforms. This marks Meta’s first significant engagement with news content in several years, signaling a shift in strategy.
Shifting News Strategy
This pivot toward integrating news with its AI chatbot contrasts sharply with Meta’s previous approach, which emphasized minimizing news and political content across its main platforms.
Following various controversies, including the discontinuation of its “News Tab” and a reduced focus on political news after 2020, Meta distanced itself from news features.
However, the new AI partnership suggests a potential return to news delivery in a more controlled manner, targeting users who actively seek news rather than those passively consuming it in their feeds.
Price Movement
On Tuesday, Meta Platforms Inc. saw its share price close at $578.16, reflecting a 1 percent increase from the prior day. Over the last year, Meta’s shares have yielded returns exceeding 90 percent.
Financial Performance
In its latest financial update, the company reported remarkable net sales of $39,071,000 Million in the quarter ended June 2024, reflecting a 22 percent YoY increase from $31,999,000 Million in the quarter ended June 2023. Moreover, EPS (Earnings per Share) surged 75 percent to 5.31, compared to 3.03 in the same period.
Written by – Siddesh S Raskar
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