Meta's AI Abundance

Stratechery's article on 'Meta's AI Abundance' by Ben Thompson details Meta's advantageous position in leveraging generative AI for its advertising and content. Thompson argues that Meta's use of machine learning for targeted ads, paired with AI-driven creative generation, could transform digital advertising, also noting the potential of AI content in user feeds. Moreover, related burgeoning AI capabilities may intensify Meta's aggregator role, affecting infinite content generation and user interface in XR technology.

• Meta's stock has historically rebounded following initial downturns.
• Generative AI significantly augments Meta's ad targeting capabilities.
• ATT changes have emphasized probabilistic over deterministic models in advertising.
• Meta's efficiency has increased in response to ATT's impact.
• Meta's scale and ad infrastructure enable a self-reinforcing black box effect for generating ad margins.