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The Tech company Meta Platforms (META, Financial) saw a 4% increase in stock value to $705.27 on Thursday morning following their strong fourth-quarter financial results announcement. Net earnings reached $8.02 per share during the fourth quarter, while revenue totaled $48.39 billion, surpassing analyst predictions of $6.77 and $47.04 billion, respectively.
The strong financial performance follows the recent release of DeepSeek bya Chinese AI firm, which has surpassed models from OpenAI and Meta along with other organizations. CEO of AI Research at Meta Yann LeCun denounced the market's apprehension about DeepSeek as baseless. He clarified that major AI funding focuses mainly on inference operations, which apply trained models to new data instead of training methods themselves.
The success of DeepSeek demonstrates to LeCun that open-source AI models bring essential value to the field of research. DeepSeek's R1 model leverages open-source development since the community can contribute to its advancement while other companies retain their proprietary models.
The combination of Meta's steady financial success and its dedication to open-source AI creation places the company in an advantageous position within the modern tech industry.
This article first appeared on GuruFocus.