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Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has reported a sharp rise in quarterly profits and confirmed it is pouring billions more into its ambitious artificial intelligence (AI) plans.
For the three months ending in June, Meta said revenue jumped 22% year-on-year to $47.5 billion (£35.86 billion), while profits surged 36% to $18.3 billion. The strong performance was driven largely by gains in digital advertising and steady user growth across its platforms.
However, expenses also climbed—up 12% to $27 billion—as the company continues to invest heavily in AI infrastructure and talent. Meta said its biggest costs are coming from building data centres, purchasing advanced servers, and funding generous compensation packages for top-tier AI experts.
Ahead of Meta’s earnings report on Wednesday, CEO Mark Zuckerberg posted a video on Instagram outlining his vision to develop what he called “AI Superintelligence”—technology capable of surpassing human cognitive abilities to solve complex problems. He also described plans for “personal superintelligence,” AI systems designed to help users with everyday tasks such as remembering anniversaries and automatically making reservations or buying gifts.
Zuckerberg said Meta’s long-term strategy is to leverage the strength of its core businesses to fund this new era of AI development. The company reports that 3.4 billion people worldwide use at least one Meta app daily.
Industry experts say Meta’s aggressive AI investments are part of a broader plan to secure its future dominance in tech. Mike Proulx of research firm Forrester noted that the company is working to “future-proof itself as a growth company” in case its current business lines begin to stagnate.
Meta is also attempting to catch up with AI leaders such as Google and OpenAI after the lukewarm reception of its latest Llama 4 family of large language models (LLMs). In a bid to close the gap, the company has been offering compensation packages worth up to $100 million to lure AI talent away from competitors.
Additionally, Meta has invested more than $14 billion in ScaleAI, a high-profile AI firm, and has brought in its CEO, Alexandr Wang, to take a leading role in Meta’s AI initiatives.
While Meta’s AI ambitions are expansive, they come with mounting costs and growing scrutiny. Analysts warn that the financial burden of developing superintelligent AI could weigh heavily on investor confidence if returns don’t materialize soon.
“AI-driven investments into Meta’s advertising business continue to pay off, bolstering its revenue as the company pours billions of dollars into AI ambitions like superintelligence,” said Minda Smiley of market research firm Emarketer. “But Meta’s exorbitant spending on its AI visions will continue to draw questions and scrutiny from investors who are eager to see returns.”
Zuckerberg has insisted that these investments are critical to ensuring Meta’s long-term relevance and dominance in the AI era. He highlighted how the company is already deploying AI tools to enhance its advertising business, which remains a key revenue stream.
Despite the rising costs, investor confidence appeared strong following the announcement. Meta’s shares jumped more than 10% in after-hours trading on the New York Stock Exchange.
