- Meta shares fell by as much as 11% after its quarterly results showed revenue grew 28% to $61bn, while profits fell 14% to $6bn.
- Meta plans to spend between $130bn and $145bn this year on AI projects, an increase from the $125bn previously planned.
- Zuckerberg stated that Meta's AI spending is "accelerating every part of our core business" and plans to sell AI technology to other businesses.
- Zuckerberg expressed optimism about AI investments, stating, "My personal bet is that the people who invest in this will feel very good and be rewarded over time."
- Meta is developing AI agents that "will be the next wave of our product line in the months and years to come".
- Zuckerberg highlighted the financial opportunity in selling AI models and tools, stating, "It's not just about selling compute; it's the API services and the productivity services..."
Meta's second-quarter earnings showed a 28% revenue growth to $61 billion, but the company's profits dropped 14% to $6 billion, leading to an 11% decline in shares. The free cash flow for the quarter was $784 million, the lowest in five years.
CEO Mark Zuckerberg emphasized the company's commitment to AI spending, which is projected to reach $130 billion to $145 billion this year, up from $125 billion previously. He stated, “What it generated in cash this quarter almost all got eaten by AI infrastructure spending,” according to analyst Mike Proulx at Forrester.
Zuckerberg noted that the AI investments are designed to enhance the core business and hinted at future opportunities, saying, “Soon, we'll have agents that can work 24/7 on your behalf.” He believes this strategy will ultimately benefit investors, stating, “My personal bet is that the people who invest in this will feel very good and be rewarded over time.” The CEO also mentioned that the AI initiative will not only focus on selling compute but also on API services and productivity services, indicating a significant market opportunity ahead.
“Meta plans to increase its AI spending to between $130bn and $145bn this year, up from $125bn, as CEO Mark Zuckerberg emphasizes that AI investments are "accelerating every part of our core business." He also noted the potential for selling AI technology to other businesses, highlighting a significant financial opportunity.”
BBC
