Snapchat Sets Sights High with Annual $1.5 Billion Investment in AI

  • Editor
  • May 20, 2024
    Updated
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Snapchat CEO Evan Spiegel has launched a giant strategic shift towards Artificial Intelligence (AI) and machine learning, with plans to invest $1.5 billion annually in these technologies.

This bold move aims to upscale Snapchat’s capabilities and enhance user experience, positioning the platform at the forefront of technological innovation.

In an interview with Bloomberg News, Spiegel acknowledged that Snapchat had fallen behind in the machine learning arena, negatively impacting the company’s business performance.

“There was a recognition that we’d fallen behind the curve on the machine learning side, which, to some degree, was reflected in the business performance,” Evan Spiegel said in an interview with Bloomberg News. 

“We needed to improve there and bring together some of our most senior machine learning folks to just talk about what it would look like for us to get to state of the art and really invest.”

To address this, Spiegel has brought together senior machine learning experts to strategize on achieving state-of-the-art capabilities and driving substantial investment in this area.

The decision to increase spending on AI and Machine learning comes amid major shifts in social media usage and advertising trends.

With this news going online, here’s what people worldwide have to say about it.

Snapchat, which initially focused on messaging and storytelling for brand advertisers, is now channeling funds into AI, machine learning, and Augmented Reality (AR) to better tap into its ads business and user feeds.

“We have never worked on anything as profound and meaningful as augmented reality,” Spiegel said during an earnings call last month. “AR enables us to surface digital experiences seamlessly in the world around us, transforming the way we use computing in our daily lives.”

Spiegel emphasized the profound impact of AR, noting that it allows digital experiences to integrate with the real world, transforming daily computing seamlessly.

Advertisers, creators, and users widely use Snapchat’s AR tools. According to the company’s earnings presentation, over 70% of new Snapchat users engage with AR on their first day using the app, and more than 300 million people interact with AR on Snapchat daily.

These AR products and services are generating significant impact at scale, reinforcing Snapchat’s commitment to innovation.

To achieve these ambitious goals, Snapchat collaborates with tech giants Amazon and Google through cloud partnerships. This strategy enables Snapchat to focus on product innovations and new user experiences while spending approximately 84 cents per daily user each quarter on infrastructure, amounting to about $1.5 billion annually.

This strategy mirrors Snapchat’s dedication to staying competitive in a rapidly evolving tech world. By prioritizing AI and machine learning, Snapchat aims to offer more personalized and engaging experiences, attract more advertisers, and drive long-term growth.

For more news and insights, visit AI News on our website.

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Dave Andre

Editor

Digital marketing enthusiast by day, nature wanderer by dusk. Dave Andre blends two decades of AI and SaaS expertise into impactful strategies for SMEs. His weekends? Lost in books on tech trends and rejuvenating on scenic trails.

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