Tech giant Meta Platforms (META) is reportedly in talks to acquire PlayAI, a California startup known for creating AI-generated voices that sound human, according to a Bloomberg report. The potential deal would give Meta access to PlayAI’s technology and possibly some of its employees. However, sources noted that the agreement hasn’t been finalized yet, and the terms could still change. Furthermore, the financial details of the deal have not been disclosed.
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This move follows Meta’s recent $15 billion investment for a 49% stake in Scale AI, which shows that the company is serious about becoming a major player in the competitive AI space. Indeed, Meta has been actively pursuing AI-related deals this year while also hiring top talent from rivals like Google (GOOGL) and Microsoft-backed OpenAI (MSFT). For example, it just recently poached Lucas Beyer, Alexander Kolesnikov, and Xiaohua Zhai from OpenAI’s Zurich office. The company has also previously attempted to acquire other AI firms, including Perplexity AI, Runway AI, and FuriosaAI.
Interestingly, Meta’s aggressive push into AI is similar to its earlier strategy during the rise of social media, when it quickly acquired Instagram and WhatsApp to stay ahead of its competitors. With this new focus on AI, Meta is trying to secure a leading position in the next wave of tech innovation by using acquisitions and top-tier talent to build what it is calling its “superintelligence group,” which focuses on developing artificial general intelligence (AGI). For context, AGI refers to AI systems that can understand, learn, and apply knowledge across a wide range of tasks at a human-like level of intelligence.
Is Meta a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 42 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $717.26 per share implies that shares are near fair value.
