Meta’s profit surge fuels AI drive

Buoyed by a substantial surge in its latest financial results, social media behemoth Meta Platforms is significantly escalating its investments in artificial intelligence (AI).

The company, which operates Facebook, Instagram, and WhatsApp, reported a robust 36% jump in profits to $18.3 billion for the second quarter, with revenue climbing 22% to $47.5 billion compared to the same period last year.

This impressive financial performance is directly underpinning CEO Mark Zuckerberg’s ambitious AI agenda. While expenses also rose by 12% to $27 billion, Meta anticipates further increases as it pours billions into developing advanced AI.

“We’re investing heavily in our AI efforts,” Zuckerberg stated, adding that the development of “AI Superintelligence” that surpasses human intelligence is “now in sight.” He envisions “personal superintelligence” that will assist users with everyday tasks, from remembering anniversaries to making reservations.

Meta’s intensified AI push comes as it aims to bridge the gap with competitors like OpenAI and Google, especially after its Llama 4 large language models faced some criticism. The company is aggressively recruiting top AI talent, offering packages reportedly exceeding $100 million, and has made a significant $15.1 billion non-marketable equity investment in AI firm ScaleAI.

Mike Proulx, a research director at Forrester, commented: “Not only has Meta made demonstrable strides with AI, but it’s helping to future-proof itself as a growth company.” He noted that the pace of the AI race is “much faster” than previous tech competitions.

Meta has already leveraged AI to enhance its core advertising business, contributing to its strong revenue. However, the escalating costs of developing superintelligence have drawn scrutiny. Minda Smiley from Emarketer cautioned: “Meta’s exorbitant spending on its AI visions will continue to draw questions and scrutiny from investors who are eager to see returns.”

Despite these concerns, Meta’s shares soared by over 10% in extended trading following the earnings announcement, signalling investor confidence in the company’s strategic direction.