Facebook Inc (NASDAQ:FB)’s acquisition of Wit.ai should not surprise any industry observer, Mike Butcher of TechCrunch says in a discussion on CNBC.
Yesterday, Wi.ai announced that it was “joining” Facebook Inc (NASDAQ:FB). The company said that the acquisition by the technology giant is “an incredible acceleration in the execution of our vision” because Mark Zuckerberg and company have “the resources and talent to help us take the next step.”
“You’ve got to remember that Facebook, Google, Microsoft [and other] big tech players have to move to where the puck is moving, as it were. Wearables hardware is where things are moving towards,” Butcher said.
According to the TechCrunch editor at large, Google bought Nest and Facebook bought Oculus Rift and now Wit.ai because wearables it where the next wave of user interface and gaming is.
Facebook Inc (NASDAQ:FB)’s newest acquisition is a speech recognition company. The company has developed a platform that makes it easier for developers to build applications for mobile devices that its users can talk to.
According to the company, it has gathered about 6,000 developers which have made hundreds of applications using the company’s platform.
The platform is currently open and free which points to the possibility that the social media giant has made the acquisition as a way to entice developers of applications running through Facebook to develop and integrate speech recognition technology into their applications. The social networking giant generates revenue through advertisements on its site and through apps on its platform.
Asked when Facebook Inc (NASDAQ:FB) will likely rollout Wit.ai technology to its numerous products, Butcher said that it will probably be seen by the public in about five years.
Facebook Inc (NASDAQ:FB) shareholders includes Karthik Sarma’s SRS Investment Management which held 5 million shares in the company by the end of the third quarter of 2014.