Meta In Talks To Tap Google's Gemini For Ads

This article first appeared on GuruFocus.

Meta Platforms (NASDAQ:META) may be turning to a rival for a little AI help. According to The Information, the company has held talks with Google (NASDAQ:GOOG) about using its Gemini models to improve ad targeting.

The discussions have involved Meta staffers and Google Cloud employees and, while early, highlight concerns that Meta's in-house AI tools may be trailing competitors. Some at Meta have even floated tweaking Gemini and Gemma with Meta's ad data, while others see a role for Gemini in understanding content.

Warning! GuruFocus has detected 5 Warning Sign with META. Is META fairly valued? Test your thesis with our free DCF calculator.

The market reaction was split: Meta slipped 0.5% in after-hours trading, while Google gained about 1%. The news also comes just weeks after Meta signed a six-year, $10 billion cloud deal with Google Cloud, showing how even direct rivals are finding ways to overlap.

Meta's communications chief Andy Stone downplayed the report, saying the company regularly benchmarks outside tools but continues to rely on its own proprietary ad-targeting systems. Still, the fact that talks are happening underscores how much pressure there is in the AI race.

View Comments