According to foreign news reports, the share price of Facebook's parent company Meta Platforms (Meta) broke through $500 again on Thursday**, and the Facebook parent company emphasized its success in using generative artificial intelligence to increase engagement.
The company provided new details on how to use powerful generative AI models to recommend in the Facebook ecosystem.
Tom Alison, head of Facebook, presented the details of the program at the Morgan Stanley industry conference.
He said Meta saw positive results when it recently pivoted to using large language models to improve its algorithm for recommending Reels to Facebook users.
The test began at the end of last year. Using the same data and a new model architecture to recommend to users, Meta saw an 8%-10% increase in the time Reels spent on Facebook, Alison said.
"This tells us that this new model architecture learns from data much more efficiently than the previous generation," Alison said.
Alison added that expanding the model to other parts of Facebook is part of the company's technology roadmap through 2026.
"If we do that, not only will the recommendations be more engaging and relevant, but we think they'll be more responsive," he said. So, if you see something you're interested in in Reels and then go back to your (Facebook) feed, we can show you more of that in your feed as well, very seamless and responsive.
Today, meta 33% to close at 51230 points. Wednesday's share price** 12%。
Meta's share price has soared nearly 180% in the last 12 months. Meta sees itself as a possible winner in AI, which has helped to achieve these results. The company is spending billions of dollars on computing chips from Nvidia (NVDA) and others to fulfill its AI ambitions. Last year it launched a powerful large language model called llama. But Meta CEO Mark Zuckerberg is a proponent of an open-source approach to AI. This means that the tech giant's AI resources are freely available to developers and researchers.
Zuckerberg has previously told analysts that AI investments can pay off through closer interaction with Meta's apps.
Zuckerberg said at the company's October earnings conference** that as long as the engagement of the app increases, more opportunities for monetization will be created.
Almost all of Meta's revenue is generated by selling ads on its social ** platform.
Alison's remarks were in line with what Zuckerberg said to analysts at the company's fourth-quarter earnings conference** in February.
Zuckerberg said: "The biggest opportunity in the future is to unify our REELS and other types of recommender systems. This will help people discover the best content in our system, regardless of its format.
In addition, Alison said on Wednesday that Meta's AI advancements could help it stay in touch with the new generation.
"The next generation we're looking at, Generation Z, young Americans between the ages of 18 and 29, have different expectations of today's social **," Alison said. They want to stay in touch with their friends and the people they care about. But they also believe that social can really open up their world and help them pursue their interests, and they want to see content from social.
In other Meta news, Wall Street reported on Thursday that e-commerce platform Temu spent nearly $2 billion on advertising through Meta last year.
Temu was launched in 2022 by China's Pinduoduo Holdings (PDD). It is one of the Chinese retailer groups that has invested heavily in advertising through Facebook and Instagram to attract American consumers.