Meta Platforms Inc. (NASDAQ: META) is reportedly in early talks with Alphabet Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL) to use Google's Gemini AI models to strengthen its ad business.
Meta shares slipped 1.54% on Thursday, extending their decline to 4.73% over the past five sessions, according to Benzinga Pro.
Meta Explores Gemini For Ads
Meta staff have held discussions with Google Cloud about fine-tuning Gemini and its open-source sibling, Gemma, using Meta's proprietary ad data, reported Reuters on Thursday (via The Information).
The goal would be to sharpen ad-targeting capabilities across platforms such as Facebook, Instagram and WhatsApp.
The talks are preliminary and may not result in a deal.
Meta and Google did not immediately respond to Benzinga's request for comments.
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Billions Spent On In-House AI
The Mark Zuckerberg-led company has invested heavily in its Llama family of AI models, data centers and top-tier research talent.
However, reports suggest Meta has faced hurdles in scaling its in-house technology quickly enough to compete with rivals, the report said.
The company has taken an all-of-the-above approach to AI development, a Meta spokesperson said in earlier comments.
Meta had reportedly explored temporary partnerships with Google and ChatGPT-maker OpenAI to power Meta AI, its flagship chatbot and conversational features across its apps.
Competitive Pressures In Ads And AI
Meta and Google dominate the digital advertising market, and both reported last quarter that AI is helping drive gains in ad revenue.
For the quarter ended June 30, Meta reported $25.56 billion in operating cash flow, $8.55 billion in free cash flow and $47.07 billion in cash and marketable securities.
Meanwhile, Meta's Superintelligence Labs, formed earlier this year, has also been racing to deliver Llama 5 after the mixed reception to Llama 4.
Meta has also reorganized its partnerships after strains surfaced with Scale AI, a data-labeling partner, as some executives left and researchers reportedly favored rival vendors Mercor and Surge.
With AI at the center of its growth strategy, Meta is also pushing forward with its multibillion-dollar "Hyperion" data center project in Louisiana, which has drawn scrutiny from regulators and environmental groups.
Benzinga’s Edge Stock Rankings indicate that META is maintaining an upward trend across short, medium and long-term periods, with more performance insights available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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