Meta executive: AI investment seems aggressive, but it's not crazy.

The rapid investment in AI infrastructure has sparked concerns that the current prosperity in the big tech companies sector may turn into a bubble. Is Meta, and the entire Silicon Valley, investing too much in AI? "Of course, no Meta manager would answer 'yes'," said Alex Schultz, Chief Marketing Officer and Vice President of Analytics at Meta, in an interview at the Web Summit technology conference in Lisbon. Despite the staggering amount of funding, Schultz stated that the current trend is not as significant as historical bubbles. He used the late 19th century American railway bubble as a comparison: "It may seem radical, but it's not insane." In October, Goldman Sachs analysts estimated in a research report that AI-related investments in the US account for less than 1% of GDP, compared to 2% to 5% during early technology booms. Schultz mentioned that Meta's investments in AI have already started generating billions of dollars in revenue, as these investments have improved advertising tools and content ranking algorithms.