Meta is no longer just a social media powerhouse—it's betting its future on becoming the global leader in artificial intelligence.
Meta Platforms has reported one of its strongest quarters in recent history according to BBC News, with soaring profits and an aggressive plan to dominate the next frontier: artificial intelligence. While core platforms like Facebook and Instagram continue to deliver massive advertising revenue, CEO Mark Zuckerberg is redirecting billions into what he calls “AI superintelligence”—a long-term gamble that’s drawing both excitement and scrutiny.
Profit Surge Gives Meta AI Momentum
For the three months ending June 30, Meta posted revenue of $47.5 billion—a 22% increase year-over-year—and a 36% rise in profits to $18.3 billion. As highlighted by AP News, this performance far exceeded Wall Street expectations, propelling Meta’s stock over 10% in after-hours trading. With daily usage figures now at 3.48 billion people across its family of apps, Meta’s dominance in global digital engagement continues to fuel its cash-generating engine.
AI Investment Skyrockets Amid Growing Costs
Expenses for the quarter rose by 12% to $27 billion, largely due to capital investments in infrastructure and competitive compensation for AI talent. As detailed in the Financial Times, Meta expects to spend between $114 billion and $118 billion for the year, with capital expenditures hitting up to $72 billion—a figure likely to grow further in 2026.
One major source of spending is Meta’s investment in servers, data centers, and specialized chips to support the training of large language models. Employee compensation is also rising, with Meta reportedly offering massive salary packages to lure researchers away from competitors.
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Superintelligence: From Concept to Core Strategy
Ahead of the earnings call, Mark Zuckerberg shared a video on Instagram outlining his long-term vision for artificial general intelligence. As reported by The Guardian, Zuckerberg claims “superintelligence is now in sight,” and revealed plans for "personal superintelligence" assistants capable of handling everything from remembering anniversaries to ordering gifts on your behalf.
This vision has already reshaped Meta’s internal structure. The company has poured more than $14 billion into ScaleAI and appointed its CEO, Alexandr Wang, to help lead Meta's Superintelligence Lab.
Ad Revenue Still Reigns—for Now
While AI dominates the headlines, advertising remains the financial backbone of Meta. According to Investor’s Business Daily, improvements in AI-driven ad targeting and automation tools have boosted both ad impressions and pricing. Innovations like image-to-video generation and smarter recommendations on Instagram Reels are helping keep ad performance strong even as competition intensifies.
Analyst Praise and Investor Doubts
Meta’s AI strategy has received both applause and caution. As noted by Business Insider, the company is “future-proofing” itself against the potential stagnation of its current platforms. But there’s rising concern over whether the enormous costs associated with developing superintelligence will pay off anytime soon.
The Reuters coverage emphasized that while Meta has slightly trimmed its capital expenditure outlook, analysts are watching closely for tangible AI product rollouts that justify the growing investment.
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FAQ's/People Also Ask
What is “personal superintelligence” and how will it work?
“Personal superintelligence” is Meta’s term for a next-generation AI assistant that can handle highly personalized tasks—like booking a table for your partner’s birthday, ordering a last-minute gift, or even managing your weekly schedule—without needing constant prompts. It blends memory, reasoning, and natural language interaction in one tool.
How does Meta’s AI plan compare to OpenAI and Google?
Meta is attempting to catch up after trailing behind in early AI adoption. While OpenAI’s GPT models and Google’s Gemini lead in user traction, Meta is building a longer-term play focused on infrastructure scale, personal assistants, and social-integrated AI. Investments in ScaleAI and the recruitment of Alexandr Wang are part of this catch-up strategy.
Where is Meta getting the money for all these AI investments?
The funding comes primarily from its profitable advertising business. With nearly 3.5 billion daily users and market-leading ad targeting tech, Meta generates billions in quarterly profit, which Zuckerberg is now funneling into future-focused AI initiatives.
Are there any regulatory risks tied to Meta’s AI expansion?
Yes, antitrust regulators in both the U.S. and Europe are increasingly monitoring Meta’s moves. With rising concentration in the AI space and massive acquisitions like the stake in ScaleAI, concerns around monopolistic practices and data privacy are growing, though no formal charges have been filed yet.
The Final Word
Zuckerberg is no longer simply building the next Facebook—he’s chasing a future where Meta becomes the world's leader in artificial general intelligence. The company’s record-breaking profits are giving him the runway to do just that, even if it means burning billions in the process.
If Meta’s vision comes true, the tools that help you share photos or watch short videos may one day evolve into AI assistants that think, plan, and act on your behalf. But until that future arrives, investors will be watching closely—not just for vision, but for results.
