Meta Platforms reported a surge in profit, with revenue rising 22% year-over-year to $47.5 billion, and net income exceeding $18.3 billion in the second quarter of 2024.
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The social media giant who owns leading platforms including Facebook, Instagram, and WhatsApp aims to utilise its financial profits into artificial intelligence (AI) projects following the new manifesto revealed by CEO Mark Zuckerberg.
Zuckerberg outlined his vision for developing “AI superintelligence: that aims to surpass human intelligence to solve complex problems alongside “personal superintelligence” for everyday tasks like reminders and reservations.
To practically implement its manifesto, Meta has invested heavily in infrastructure, talent and acquisitions, including a $14 billion stake in ScaleAI and announcing $100 million pay packages to lure top AI researchers.
The company is giving major competition to its rivals like Open AI and Google after its Llama 4 models underperformed expectations.
Concurrently, AI has already boosted Meta’s core advertising business with 3.4 billion daily users across its apps benefitting from improved ad targeting.
Despite strong profits, analysts warn that Meta’s aggressive AI spending can raise investors' concerns.
Minda Smiley of Emarketer said: “AI-driven ad improvements are paying off, but the billions poured into superintelligence will face scrutiny until returns materialize.”
Zuckerberg’s strategy hinges on leveraging Meta’s profitable social media empire to fund its AI future, though the long-term payoff remains uncertain.
