Meta Plans to Charge for Advanced AI Assistant Features
Portfolio Pulse from Anusuya Lahiri
Meta Platforms Inc (NASDAQ:META) is considering a paid version of its AI assistant, Meta AI. This move aligns with competitors like Microsoft (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOG, GOOGL), who charge for advanced AI features. Meta's AI initiatives include a custom AI chip to reduce dependence on Nvidia (NASDAQ:NVDA). Analysts see Meta as undervalued due to its AI and ad potential. Meta's stock has risen 87% in the last year.

May 24, 2024 | 2:21 pm
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NEGATIVE IMPACT
Meta's custom AI chip aims to reduce dependence on Nvidia Corp, potentially impacting Nvidia's data center business.
Meta's development of a custom AI chip to reduce dependence on Nvidia could negatively impact Nvidia's data center business.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
NEUTRAL IMPACT
Alphabet Inc charges $20 monthly for advanced AI features, similar to Meta's proposed strategy. This indicates a competitive landscape in AI services.
Alphabet's existing pricing strategy for advanced AI features is similar to Meta's proposed plan, indicating a competitive landscape in AI services.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Alphabet Inc charges $20 monthly for advanced AI features, similar to Meta's proposed strategy. This indicates a competitive landscape in AI services.
Alphabet's existing pricing strategy for advanced AI features is similar to Meta's proposed plan, indicating a competitive landscape in AI services.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
Microsoft Corp charges $20 monthly for advanced AI features, similar to Meta's proposed strategy. This indicates a competitive landscape in AI services.
Microsoft's existing pricing strategy for advanced AI features is similar to Meta's proposed plan, indicating a competitive landscape in AI services.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Investors can gain exposure to Meta's stock via IShares Global Comm Services ETF (NYSE:IXP), which may benefit from Meta's AI initiatives.
IShares Global Comm Services ETF holds Meta stock, which may benefit from Meta's AI initiatives and potential new revenue streams.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30
POSITIVE IMPACT
Meta Platforms Inc is considering a paid version of its AI assistant, Meta AI. This move could generate new revenue streams and aligns with competitors' strategies. Analysts see Meta as undervalued, with strong potential in AI and ads.
Introducing a paid version of Meta AI could create new revenue streams and aligns with the strategies of competitors like Microsoft and Alphabet. Analysts view Meta as undervalued, highlighting its AI and ad potential.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Investors can gain exposure to Meta's stock via Vanguard Communication Services ETF (NYSE:VOX), which may benefit from Meta's AI initiatives.
Vanguard Communication Services ETF holds Meta stock, which may benefit from Meta's AI initiatives and potential new revenue streams.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 30