Meta Stock Soars As Company Challenges Open AI With New Launch

Boluwatife Adeyemi
Updated
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Meta Stock Soars As Company Challenges Open AI With New Launch

Highlights

  • Meta Stock surged following the company's announcement of its new AI model.
  • The new AI model called Movie Gen will challenge tools from AI startups like OpenAI.
  • Meta Stock is up over 65% this year.

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.

Advertisement
Advertisement

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.

Advertisement
Advertisement

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.

Advertisement
coingape google news coingape google news
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.