Meta chief Zuckerberg doubles down on AI spending
Meta chief Mark Zuckerberg defended the company's massive spending on artificial intelligence despite a 6% drop in shares following the release of strong earnings. Meta raised its capital expenditures for this year to a range of $125 billion to $145 billion, with a focus on developing 'agentic' AI and a new Muse Spark AI model.
Meta chief Mark Zuckerberg defended the company's massive spending on artificial intelligence despite a 6% drop in shares following the release of strong earnings. The social networking giant raised its capital expenditures for this year to a range of $125 billion to $145 billion. Zuckerberg highlighted a new trend in 'agentic' AI, where digital assistants handle computer tasks independently. Meta's AI investment is not directly tied to a revenue stream, unlike Amazon, Microsoft, and Google, which sell AI-powered cloud services. The company reported a profit of $26.8 billion on revenue of $56.3 billion in the quarter, but expenses rose to $33.4 billion as it chases 'superintelligence' through major infrastructure buys and hiring top AI talent.
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