Tech stocks were surging broadly on news of the two-week ceasefire in Iran, and Meta Platforms (META 2.29%) caught a tailwind from that catalyst, which triggered a move back into risk assets.
However, there was some company-specific news that drove the stock even higher today as the company announced the launch of a new AI large language model this afternoon.
As a result, Meta stock closed up 6.4% on the news, getting a boost after the news came out.
Image source: The Motley Fool.
Meta is taking another AI swing
Meta invested significant resources into its Llama LLM models, but its product was widely regarded as being inferior to the industry's leaders, OpenAI's ChatGPT, Anthropic's Claude, and Google's Gemini.
On Wednesday, the company announced Muse Spark, Meta's most powerful model yet, and the first model from Meta SuperIntelligence Labs.
It said Muse Spark would power a smarter and faster Meta AI, driving improvements in its core products like Instagram and Facebook. The company rebuilt its AI stack from the ground up, noting that Muse Spark was an early data point in its trajectory and it had larger models in development.
NASDAQ: META
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Why Muse Spark is so important to Meta
CEO Mark Zuckerberg has staked the company's future on AI several times, though most of its efforts have come up short. It recently pulled the plug on its Metaverse project and torched tens of billions of dollars on its AI-focused reality labs division.
Llama, its first large language model, has failed to gain significant market share, but the stakes continue to get higher.
OpenAI and Anthropic now have a combined market value of more than $1 trillion, and the success of Alphabet's Gemini helped that company tack on more than $1 trillion in market value last year.
Success in AI models could do something similar for Meta and would justify the money it's poured into AI. It's soon to say what the impact of Muse Spark, but it makes sense that investors are excited about it.
