Meta’s Profit Surge Fuels Zuckerberg’s Costly AI Push
Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, reported a sharp rise in profits as it ramps up spending on artificial intelligence projects.
The company said revenue for the April–June quarter climbed 22% year-on-year to $47.5 billion, while profits jumped 36% to $18.3 billion. However, expenses also grew by 12% to $27 billion, driven by investment in servers, data centres, and compensation for top AI talent.
CEO Mark Zuckerberg signalled an aggressive push into what he called “AI superintelligence”, describing ambitions to build systems more capable than humans at solving complex problems. He also previewed plans for “personal superintelligence” that could manage tasks such as reminders, reservations, and gift purchases.
Meta has already spent over $14 billion on a stake in AI firm ScaleAI and offered $100 million pay packages to lure top AI researchers. The company hopes to use profits from its core social media businesses – used by 3.4 billion people daily – to bankroll its AI vision.
While AI-driven improvements in advertising have boosted revenue, analysts caution that Meta’s massive spending on next-generation AI may draw scrutiny from investors.
Despite concerns, Meta’s stock rose more than 10% in after-hours trading following the earnings report.
