Meta CEO Mark Zuckerberg confirmed plans to maintain aggressive spending on artificial intelligence well into next year, aligning with similar moves by other leading tech companies. During the second-quarter earnings call, Zuckerberg highlighted how the rapid pace of AI development has shaped many of Meta’s recent strategic decisions, including its $14.3 billion investment in data-annotating startup Scale AI in June, which supports a broader revamped AI strategy featuring several high-profile hires.
Zuckerberg emphasized the importance of assembling an “elite talent-dense team” capable of leveraging Meta’s powerful computing resources, referring to this as the AI Superintelligence team established over the summer. The technologies developed by this team will be deployed across Meta’s platforms such as Facebook and Instagram, reinforcing Meta’s unique ability to scale innovations to billions of users worldwide.
“When we take a technology, we’re good at driving that through all of our apps and our ad systems,” Zuckerberg stated, stressing Meta’s unmatched reach in bringing new tech to mass audiences.
However, these ambitious AI initiatives come with significant financial commitments. Meta updated its 2025 expense forecast to a range of $114 billion to $118 billion, slightly increasing the lower bound from its prior estimate. The company anticipates that its AI projects will cause 2026 expenses to rise at an even higher rate compared to 2025.
This spending trend echoes across the tech industry. Alphabet recently raised its 2025 capital expenditure forecast to $85 billion, up $10 billion from previous guidance. Microsoft also announced a first-quarter capital expenditure forecast of $30 billion, surpassing analyst expectations.
Despite the large expenditures, investors appear supportive of Meta’s AI focus, driving shares up nearly 12% in after-hours trading following strong quarterly earnings that exceeded expectations for both revenue and profit. Zuckerberg noted that AI has already contributed to increased efficiency and improved performance in Meta’s ad systems, providing tangible near-term benefits.
While Meta’s Reality Labs division continues to operate at a loss—posting a $4.53 billion operating deficit in the second quarter—the unexpected success of Ray-Ban Meta smart glasses has helped ease investor concerns. Zuckerberg expressed strong belief that smart glasses represent an ideal platform for AI, enabling seamless interaction by allowing AI to see, hear, and communicate throughout the day. He envisions advanced displays unlocking significant value by integrating AI into daily life in an intuitive, accessible way.
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