Mark Zuckerberg's Meta surges as Facebook parent's revenue soars on AI ‘superintelligence' push
The Facebook and Instagram parent now expects capital expenditures to be between $66 billion and $72 billion, compared with its prior projection of $64 billion and $72 billion.
The move follows a similar announcement by Big Tech rival Alphabet, which last week raised its capital spending outlook by $10 billion to $85 billion on the back of strong AI-driven growth in its search and cloud businesses.
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3 CEO Mark Zuckerberg has pledged to spend hundreds of billions of dollars to build massive AI data centers, having shelled out $14.3 billion for a stake in startup Scale AI.
AP
Second-quarter revenue rose 22% to $44.5 billion, beating estimates. Profit surged 36% to $18.3 billion.
Training and deploying advanced AI systems remain a capital-intensive endeavor, requiring costly hardware, massive computing resources and top-tier engineering talent.
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After a lackluster reception for its Llama 4 model that led to staff departures, Meta has tried to revitalize its AI push by sparking a high-stakes talent war that has seen it dole out more than $100 million pay packages to researchers from rival firms.
CEO Mark Zuckerberg has pledged to spend hundreds of billions of dollars to build massive AI data centers, having shelled out $14.3 billion for a stake in startup Scale AI and poached its 28-year-old billionaire CEO Alexandr Wang.
To fund the push, the billionaire founder is leaning on Meta's massive user base as well as AI-powered improvements in content engagement that make it a stable bet for advertisers even in times of economic uncertainty.
3 Zuckerberg's is betting on Meta's massive user base as well as AI-powered improvements in content engagement that make it a stable bet for advertisers even in times of economic uncertainty.
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The social media giant recently introduced an AI-driven image-to-video ad creation tool under its Advantage+ suite, allowing marketers to generate video ads from static images.
Instagram, whose Reels product competes with ByteDance's TikTok and YouTube Shorts for ad dollars in the popular short video format, is set to account for more than half of Meta's ad revenue in the US this year, according to research firm eMarketer.
Meta has also accelerated efforts to monetize its social media platforms WhatsApp and Threads by integrating ads.
3 Instagram, whose Reels product competes with ByteDance's TikTok and YouTube Shorts for ad dollars in the popular short video format, is set to account for more than half of Meta's ad revenue in the .. this year, according to research firm eMarketer.
AFP via Getty Images
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The company last month named insider Connor Hayes as head of Threads, a sign it was moving the platform away from Instagram's shadow after leaning on the photo-sharing app for growth.
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