Meta Platforms Develops AI-Powered Search Engine to Reduce Dependence on Google and Microsoft

Meta Platforms Inc (NASDAQ: META) is currently working on the creation of an AI-powered search engine aimed at decreasing its reliance on major technology competitors like Alphabet Inc (GOOGL) and Microsoft Corp (MSFT).

What You Need to Know: According to a report from The Information, Meta's new AI-based search engine is designed to crawl the internet for answers and deliver information to users through the Meta AI chatbot.

This move is significant as Meta has been using existing search engines such as Google and Bing to provide answers regarding current events, sports, and stock data to its Meta AI users.

A source familiar with Meta’s search engine team stated that the upcoming AI search engine will be capable of delivering conversational responses on topics like current news.

Additionally, it has been reported that Meta has recently signed a deal with Reuters to utilize their content to give real-time answers to users' inquiries.

On the financial front, Meta is set to announce its third-quarter results after the market closes on Wednesday. The company is expected to report earnings of $5.24 per share and a revenue of $40.268 billion.

In the previous quarter, Meta outperformed analysts’ expectations with an 11% year-over-year increase in revenue and a 7% rise in daily active users. In their earnings report, Meta claimed that its AI would likely become the most utilized AI assistant globally by the year’s end.

Meta has successfully exceeded analysts’ expectations on both revenue and earnings for six consecutive quarters, creating positive anticipation as investors look forward to Wednesday's financial report.

META Stock Performance: As of the last update on Monday, Meta Platforms stock was up by 0.82%, trading at $577.95.

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AI, Search, Meta