Meta Is Now Targeting Startups that Specialize in AI Videos
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Nevertheless, advanced video AI could play a key role in CEO Mark Zuckerberg's vision for 'personal superintelligence,' which focuses on entertainment, culture, and personal relationships. It would also strengthen Meta's push into smart glasses and virtual reality, areas where it has invested tens of billions of dollars. Furthermore, Meta recently added AI-powered video-editing tools to its Meta AI assistant and Instagram's Edits app, with Zuckerberg telling analysts that these features are 'seeing early progress.' As a result, a partnership with Pika or similar startups could help Meta keep up with competitors.
It is worth noting that this strategy comes as Meta overhauls its AI operations after earlier setbacks. Indeed, the company recently appointed Scale AI CEO Alexandr Wang as chief AI officer and invested over $14 billion in Scale. Meta also brought in former GitHub CEO Nat Friedman and Safe Superintelligence co-founder Daniel Gross, who now co-lead Meta Superintelligence Labs, its new AI division. In addition, Meta recently acquired voice AI startup PlayAI and poached top researchers from rivals like OpenAI, Anthropic, and Google (GOOGL) in order to accelerate its progress.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 43 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $850.98 per share implies 22.4% upside potential.
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