Meta’s CEO Is Making a Super-Massive Bet on Superintelligence

Meta Platforms (NASDAQ:META) CEO Mark Zuckerberg isn’t the type of leader to back down whenever there’s a generational opportunity to seize. Undoubtedly, the AI revolution is in full swing, and Meta hasn’t pulled any punches, with tens of billions of dollars committed to advancing the technology this year alone (the firm could spend upwards of $72 billion in 2025).

With Meta poised to place a big bet on a huge $10 billion data center in Louisiana shortly after pouring around $14 billion on AI startup Scale AI, the pace of these AI moves does not appear to be slowing for a firm that may very well have what it takes to pull further ahead in the AI race with the likes of Microsoft (NASDAQ:MSFT) and even NVIDIA (NASDAQ:NVDA).

Key Points in This Article:

• The company is reportedly offering multi-million dollar signing bonuses to the best AI researchers for its “Dream Team.”
• META’s trailing P/E ratio of 27.7 makes it like look a bargain compared to other Magnificent Seven companies.
• If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. This report breaks down AI stocks with 10x potential and will give you a huge leg up on profiting from this massive sea change.

Meta Is Investing Heavily in Its AI “Dream Team”

Perhaps most exciting, the social media juggernaut behind Instagram, Facebook and WhatsApp is hard at work to make artificial superintelligence a reality. With a “dream team” in place after bringing aboard Alex Wang, the visionary founder of Scale AI, perhaps investors serious about AI advancement should consider buying up the name on recent strength as META shares approach a breakout moment that may very well rival the likes of its Magnificent Seven peers in Microsoft and NVIDIA that have seen their shares recently break out to hit new all-time highs.

With a much cheaper multiple than its two larger peers, with shares trading at around 27.7 times trailing price-to-earnings (P/E), and an AI growth narrative that seems to get more attractive by the week (whether it’s a new data center deal, product announcement, investment or M&A activity), Meta may very well be the most magnificent of the Mag Seven for investors who’ve yet to expose their portfolios of the red-hot AI trade.

While it’s tough to tell which firm will achieve superintelligence or artificial general intelligence (AGI) first, there are sure to be massive rewards for the company that obtains that sought-after first-mover advantage. Indeed, there are a number of horses in the AI race that could surpass the milestone. Meta Platforms, I believe, seems to have all the tools and the CEO that can make it happen.

The Race to Superintelligence: Could Meta Be the First to Break New Ground?

Meta has not been afraid to open up its pocketbook to gain top-of-the-line talent in AI. Reportedly, Meta has been open to paying some jaw-dropping pay packages to attract the very best AI researchers around the globe. Additionally, some sources state signing bonuses of north of $100 million. An obscene amount that may soon become the industry standard for the best-of-the-best AI talent out there.

How many firms can afford to be as generous as Mark Zuckerberg’s empire to attract the best minds in AI? I’m not so sure. OpenAI was reported to have the willingness to attract such “superstar” talent needed to build a superintelligence. Either way, Meta’s social-media business has more than enough cash flow to fuel the most ambitious projects in the entire AI scene. And until we reach the next “AI winter,” I wouldn’t stand in the way of Zuckerberg and company.

Deepwater Asset Management’s Gene Munster is a fan of Meta’s AI investment strategies, noting that prior bets have “tangible” returns. As Zuckerberg hits the gas pedal, Munster sees Meta as a serious competitor, but does encourage investors to be on watch for a potential AI bubble at some point down the line.

Meta Is No Stranger to Volatility. Focusing on ROI Would Help Reward Investors

Indeed, given Meta’s aggressive AI investment plan, a bursting of the AI bubble could certainly give rise to another painful plunge, perhaps one reminiscent of the one Meta stock suffered back in late 2021 and most of 2022.

That sell-off now seems like a less remarkable distant memory, especially since Meta shares have been rocketing higher in the past year and a half. Either way, the 2021-22 meltdown in Meta shares did wipe out more than 76% of the stock’s value. And if an AI bubble does form and burst, such a pullback is always a possibility.

If there is an AI bubble brewing out there, I simply don’t see it affecting Meta stock, at least not yet. If Meta can’t continue pulling in respectable, measurable returns from AI investments as it ups its ambition by pushing toward superintelligence, a pullback could be in the cards. That said, given the automation opportunity to be had (AI may soon displace mid-level coders) and other growth engines that AI could power, I simply don’t see the firm losing sight of ROI despite the colossal size of recent AI bets.

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