Meta’s future is AI, AI, and more AI

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Meta’s second 4th earnings proceed the same communicative from the erstwhile quarter: generative AI whitethorn beryllium here, but it’s going to instrumentality a agelong clip to marque money.

The bully quality for Meta is that, dissimilar beauteous overmuch each AI startup, it already makes a batch of money. Last quarter, the institution made conscionable implicit $39 cardinal successful revenue, up 22 percent from a twelvemonth ago, and astir $13.5 cardinal successful profit, up 73 percent. 3.27 cardinal radical usage astatine slightest 1 of Meta’s apps each day. That benignant of standard and wealth buys the quality to marque large bets, which Zuckerberg is famous for doing.

On Meta’s Wednesday net call, CFO Susan Li reiterated to investors that fiscal returns from its caller AI investments volition “come successful implicit a longer play of time.” Zuckerberg was nonstop astir wherefore Meta is spending billions connected Nvidia hardware and the different infrastructure up of these aboriginal returns: “It’s hard to foretell however this volition inclination aggregate generations into the future, but astatine this point, I’d alternatively hazard gathering capableness earlier it is needed alternatively than excessively late.”

He again telegraphed that the Meta AI adjunct is connected way to beryllium the astir utilized successful the satellite earlier the extremity of the year. While helium touted that generative AI features “are things that I deliberation volition summation engagement successful our products,” helium said the existent gross volition travel from concern usage cases, similar AI creating ads from scratch and letting businesses run their ain AI agents successful WhatsApp for lawsuit service.

Some different tidbits from the net call:

Meta is already preparing to bid Llama 4, which Zuckerberg wants to beryllium the “most advanced” exemplary successful the manufacture erstwhile it comes retired sometime adjacent year. It volition request astir 10 times much compute than Llama 3.1. (Jensen Huang astir apt owes Zuckerberg several leather jackets.)
On the caller talks of Meta investing successful the eyewear elephantine EssilorLuxottica: Zuckerberg didn’t accidental thing astir an concern but said helium is excited to physique “future generations of AI glasses” aft the aboriginal traction with the latest Meta Ray-Bans. Supreme/Meta astute glasses incoming?
While the metaverse seems to person taken a backseat to AI astatine Meta successful caller quarters, Zuckerberg did notation that income of the Quest 3 are exceeding the company’s expectations, though helium didn’t specify what those expecations were. Sources archer maine a cheaper mentation of the headset is being announced astatine the company’s Connect league successful September.
Threads is “about to hit” 200 cardinal monthly users aft posting 175 cardinal astatine the opening of July.
Facebook is growing again with young adults, apparently: “The numbers we’re seeing particularly successful the US truly spell against the nationalist communicative of who is utilizing the app.”