Meta has had discussions with Google about using Gemini, the technology giant's AI model, for its ad business, according to a report. Google stock edged higher in late trades.
The Facebook parent is in talks with Google about using the AI platform to "improve ad efforts," The Information reported, citing unnamed sources.
Google stock rose nearly 1% in extended trading, while Meta traded sideways.
The news underlines Meta's ongoing efforts to improve its position in AI, where it is facing off with rivals led by Amazon, Microsoft and Google. Meta has been spending heavily to boost its AI capabilities, especially in digital ads, a key revenue driver that would give the tech giant even more capabilities to compete.
On the other hand, the news appears to affirm Google's position as a major AI player.
"For as much pride as Meta has in its own AI capabilities, it is quite an admission for them to ask Google for help on AI algorithms for selling ads," Gil Luria, head of technology research at D.A. Davidson, told Investor's Business Daily.
