Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, reported a significant boost in profits while committing billions more to artificial intelligence development.
In the quarter ending June, Meta’s revenue climbed 22% year-over-year to $47.5 billion (£35.86 billion), and net income rose 36% to $18.3 billion. However, expenses also increased by 12%, hitting $27 billion, largely due to intensified investment in AI infrastructure and staffing aligned with CEO Mark Zuckerberg’s ambitions in the space.
The company highlighted that a large share of its spending is directed toward building infrastructure — such as data centers and servers — and offering competitive compensation to top-tier employees.
Ahead of the earnings call, Zuckerberg shared a video on Instagram outlining his vision for “AI superintelligence” — systems designed to outperform human abilities in solving complex problems. He also teased future products involving “personal superintelligence” tools capable of handling everyday tasks, from memory prompts to making reservations or ordering gifts.
Forrester analyst Mike Proulx said Meta is positioning itself to remain a long-term growth player, even if its existing platforms lose momentum.
Meta has recently intensified its efforts to match the pace of leading AI firms like OpenAI and Google. After the lukewarm reception of its Llama 4 large language models, the company is offering $100 million compensation packages to recruit top AI experts. It has also invested more than $14 billion in ScaleAI and brought in its CEO, Alexandr Wang, to lead new initiatives.
Zuckerberg has leveraged Meta’s robust core business as a financial engine for these AI ambitions. Currently, 3.4 billion users interact with at least one Meta platform daily.
Artificial intelligence is already being used to optimize Meta’s advertising operations, further enhancing revenue performance.
Still, the cost of AI innovation has sparked concerns among investors and analysts.
“Meta continues to strengthen its ad business through AI, which is paying off in revenue gains,” said Minda Smiley of Emarketer. “But its massive AI spending — especially on ideas like superintelligence — may face growing scrutiny from shareholders awaiting tangible returns.”
Following the earnings announcement, Meta’s stock jumped over 10% in after-hours trading on Wall Street.
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