Does Meta Platforms' Massive $14.3 Billion Artificial Intelligence (AI) Bet Make the Stock a Buy Now?

Core Viewpoint - Meta Platforms is making significant investments in artificial intelligence, particularly through a $14.3 billion investment in Scale AI, which is expected to enhance its AI capabilities and attract top talent [1][2][13] Investment Details - Meta has acquired a 49% non-voting stake in Scale AI and will spend $450 million annually on its platform, gaining access to valuable proprietary data sets [1][5] - The investment also brings Scale's founder and CEO, Alexandr Wang, to lead a new AI "superintelligence" lab at Meta [5][6] AI Strategy and Talent Acquisition - Meta has faced challenges in attracting top AI talent, exacerbated by disappointing results from its Llama AI model [6] - The company is focused on building advanced AI systems to enhance its existing products rather than commercializing the AI model itself [7][8] Future AI Services - Meta is developing an AI service that can autonomously create and manage ad campaigns, which is expected to launch by the end of next year [9][10] - This service could increase demand for advertising on Meta's platforms by lowering barriers for businesses to advertise, potentially leading to higher ad prices [11] Competitive Position - Meta is well-positioned to leverage AI due to its extensive platform and financial resources, making its investment in Scale a strategic advantage [13] - The stock is currently trading at approximately 27 times forward earnings, suggesting it may be undervalued [13]