Meta Inks Partnership for 3D Ads in Step toward the Metaverse

A smartphone with Facebook's logo is seen in front of displayed Facebook's new rebrand logo Meta in this illustration taken October 28, 2021. (Reuters)
A smartphone with Facebook's logo is seen in front of displayed Facebook's new rebrand logo Meta in this illustration taken October 28, 2021. (Reuters)
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Meta Inks Partnership for 3D Ads in Step toward the Metaverse

A smartphone with Facebook's logo is seen in front of displayed Facebook's new rebrand logo Meta in this illustration taken October 28, 2021. (Reuters)
A smartphone with Facebook's logo is seen in front of displayed Facebook's new rebrand logo Meta in this illustration taken October 28, 2021. (Reuters)

Meta Platforms Inc will make it easier for brands to run three-dimensional ads on its Facebook and Instagram social media platforms through a new partnership with an ecommerce technology firm.

The integration with VNTANA will allow brands to upload the 3D models of their products to Facebook and Instagram and easily convert them into ads, VNTANA said on Thursday in a press release.

The move is a stepping stone into advertising in the metaverse, said VNTANA Chief Executive Ashley Crowder, referring to the futuristic idea of a collection of virtual worlds that can be accessed through devices such as headsets.

Meta has staked its future on contributing to the building of the metaverse, which it has said could take up to a decade to be realized.

Meta previously partnered with augmented reality (AR) companies Modiface and PerfectCorp to help beauty and cosmetic brands more easily run 3D and AR advertising.

"The metaverse is basically the spatial internet," Crowder said. "It is a whole world of possibility that starts with having the right 3D models of your products."

Facebook and Instagram users who see a 3D ad while browsing on their desktop or phone can interact with an image of a handbag, for instance, and move it around to view the item from all angles.

"In a way, this offers a glimpse of what you might expect on future devices like AR glasses," said Chris Barbour, director of augmented reality partnerships at Meta's Reality Labs unit.

Before VNTANA's integration with Meta, advertisers would need to reformat 3D files to be compatible with Meta's ad systems. Now, brands can use VNTANA to easily upload and convert the files into ads without technical expertise in working with 3D images, Crowder said.



Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
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Dell Raises Forecasts as Demand Surges for Nvidia Powered AI Servers 

The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)
The logo of Dell Technologies at the Milipol Paris in Villepinte near Paris, France, November 15, 2023. (Reuters)

Dell Technologies raised its annual revenue and profit forecasts on Thursday, buoyed by demand for its AI-optimized servers that are powered by Nvidia's powerful chips, sending its shares up about 3% in extended trading.

Dell's infrastructure solutions group, which includes Nvidia-powered servers, surged 38% to a record revenue of $11.65 billion in the second quarter.

The company's servers are engineered to handle AI systems' intense computational demands, including training large language models.

"Enterprise remains a significant opportunity for us, as many are still in the early stages of AI adoption," Chief Operating Officer Jeff Clarke said in a post-earnings call.

Clarke said that Dell sees an emerging opportunity in "sovereign AI" by leveraging the company's strong relationships with governments globally.

Nvidia on Wednesday said nations building AI models in their own languages were turning to its chips, and that this would contribute about low double-digit billions to its revenue in the financial year ending in January 2025.

Nvidia CEO Jensen Huang called out the partnership with Dell earlier this year, saying they were helping businesses create their own "AI factories."

Dell's stock has risen 45% this year.

Dell said on Thursday it now expects annual revenue outlook to be between $95.5 billion and $98.5 billion, up from $93.5 billion and $97.5 billion previously. It also raised its annual adjusted profit per share forecast to $7.80, plus or minus 25 cents.

Demand for its AI-optimized servers rose about 23% sequentially to $3.2 billion in the second quarter. The backlog for these AI servers was $3.8 billion.

"Our pipeline has grown to several multiples of our backlog," Clarke said in a statement.

Revenue for the second quarter ended Aug. 2 rose about 9% to $25.03 billion, beating analysts' average estimate of $24.14 billion, according to LSEG data. It reported adjusted profit per share of $1.89 per share, compared with estimates of $1.71 per share.

While AI server demand soared, Dell's PC business struggled, losing market share to rivals. However, a strong refresh cycle for

AI PCs are expected next year after Microsoft ends support for Windows 10.

Revenue for the client solutions group - home to PCs - fell about 4% to $12.41 billion.

"Dell lost PC shipment shares in key markets in the second quarter. It is the top vendor in the US business market, but its competitors have shown growth and gained more shares than they did a year ago," said Mikako Kitagawa, director analyst at Gartner.

The company took a $328 million charge for workforce reductions in the second quarter.

Separately, Reuters exclusively reported earlier on Thursday that Dell is again exploring a possible sale of cybersecurity firm SecureWorks, following previous unsuccessful attempts to find a buyer.