Meta launches ChatGPT rival app ahead of key earnings
on Tuesday, marking its most direct move yet against OpenAI’s ChatGPT – and doing so just 24 hours ahead of its first earnings report of the year.
The app, built on Meta’s llama models, features on AI assistant, image generation, and a ‘discover’ feed to showcase user prompts, mirroring strategies seen in recent roll-outs from Google’s Gemini and xAI’s Grok.
The launch was announced during Meta’s developer conference in Melo Park, and arrives at a delicate moment.
While the Big Tech titan has touted its open-source credentials, Lamma 4 – its most recent family of generative AI models – has been criticised for its mixed performance while a controversy around benchmark manipulation has also been noted.
“They should have been more explicit that the Maverick model was not the same one released,” said Ion Stoica, co-founder of LM Arena.
Despite Meta’s leadership asserting that “2025 is the year a highly intelligent and personalised AI assistant reaches a billion people”, developer enthusiasm appears to have cooled.
Wall Street awaits
Meta’s financial results on Wednesday will be closely scrutinised for how effectively its $60-65bn (£44.78- 48.51bn) in AI infrastructure spending is translating into growth.
Analysts expect $5.21 (£3.89) in earnings per share (EPS) on $41.2bn (£30.75bn) in revenue – up 13 per cent from a year ago – but note that downward revisions in recent weeks suggest growing caution.
Free cash flow is projected to fall 31 per cent to $8.6bn (£6.42bn) due to soaring capex.
Tariffs complicate the picture further. The 2nd May end of the ‘de minimis’ exemption – which has shielded imports under $800 (£597.12) from duties – threatens to raise costs for top Chinese advertisers like Temu and Shein.
That could weigh on ad budgets and hit Meta’s bottom line later this year.
“Second-half visibility is murky, and the tariff shift may only amplify uncertainty”, said CFRA’s Angelo Zino, who expects guidance to reflect a broader range of outcomes.
But some analysts believe Meta’s scale offers insulation.
“Meta is more resilient than peers”, said Baird’s Ted Mortonson, pointing to the company’s 3.4bn monthly users.
While Meta has beaten EPS estimates four quarters in a row, its ability to monetise generative AI will be key to sustaining investor confidence.
“Any concrete progress on AI monetisation could lift the multiple”, said Morningstar’s Malik Ahmed Khan.
With 88 per cent of analysts rating it a buy and a $707 average price target, Wall Street remains bullish – yet expectations are high.