Evan Spiegel, CEO at Snap, acknowledged social media app Snapchat has fallen behind on AI, telling Bloomberg it plans to increase investment on the technology following years of focusing on its advertising business.
Spiegel noted 'there was a recognition that we'd fallen behind the curve on the machine learning side,' which he said was reflected in Snap's business performance. The CEO outlined plans to bring together senior machine learning experts to explore AI investment and development.
Snap could invest roughly $1.5 billion a year in order to compete with rivals such as Meta Platforms, which has moved to revamp its computing infrastructure. In Q1 2024, Snap's revenue was up 21 per cent year-on-year to $1.2 billion, marking positive growth.
As its ad revenues improved, Spiegel told Bloomberg it also plans to boost Snapchat's recommendation algorithms and combine the platform's short-form videos and Story features. Snap's premium service, Snapchat+, had 7 million paying subscribers as of December 2023.
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