Meta's Profit Boost Drives AI Goals, Zuckerberg Targets Superintelligence

Published Date : 01/08/2025 

Meta Platforms reports a significant profit increase and plans to invest billions more in AI projects, aiming to catch up with rivals like OpenAI and Google. 

Social media giant Meta Platforms has announced a significant surge in its profits, driven by robust revenue growth and a renewed focus on artificial intelligence (AI) projects. The company, which owns popular platforms like Facebook, Instagram, and WhatsApp, reported a 22% increase in revenue for the three months ending June 30, reaching $47.5 billion (£35.86 billion). Profits jumped by 36% to $18.3 billion, reflecting the company's strong financial performance.

At the same time, Meta's expenses are on the rise, increasing by 12% to $27 billion. The bulk of these expenses will go towards building infrastructure, including servers and data centers, and enhancing employee compensation packages. This spending is expected to continue as the company pushes forward with its ambitious AI initiatives.

In a recent Instagram post, CEO Mark Zuckerberg outlined his vision for developing what he calls 'AI Superintelligence'—an advanced form of AI that surpasses human intelligence and can solve complex problems. Zuckerberg also mentioned the creation of 'personal superintelligence,' which would use advanced AI to assist users with everyday tasks, such as remembering important dates and making reservations.

Mike Proulx from Forrester, a research and advisory firm, noted that Meta's AI investments are helping the company future-proof itself as a growth company, especially if its current offerings face challenges in the future.

Meta has been working to catch up with rival AI developers like OpenAI and Google. The release of the Llama 4 family of large language models (LLMs) was met with mixed reactions from users and investors, prompting Meta to step up its efforts. The company has offered $100 million pay packages to top AI talent to lure them away from competitors and has invested more than $14 billion in AI firm ScaleAI, bringing in CEO Alexandr Wang to lead the charge.

Zuckerberg's strategy involves leveraging the strength of Meta's core businesses to fund its AI projects. He highlighted that 3.4 billion people around the world use at least one Meta app every day, providing a solid foundation for these investments.

Meta has also integrated AI into its advertising business, which has shown promising results. However, the high costs associated with developing superintelligence have raised concerns among some analysts. Minda Smiley from Emarketer noted that while AI-driven investments have bolstered Meta's revenue, the company's exorbitant spending on AI visions will continue to draw scrutiny from investors eager to see returns.

Despite these concerns, Meta's shares jumped by more than 10% in extended trading in New York following the earnings announcement, indicating strong investor confidence in the company's direction. 

Frequently Asked Questions (FAQS): 

Q: What is Meta Platforms?

A: Meta Platforms is a technology company that owns popular social media platforms such as Facebook, Instagram, and WhatsApp. It also invests in emerging technologies like artificial intelligence (AI).

Q: What is AI Superintelligence?

A: AI Superintelligence refers to an advanced form of artificial intelligence that surpasses human intelligence and can solve complex problems, as described by Meta CEO Mark Zuckerberg.

Q: How much did Meta's profits increase?

A: Meta's profits increased by 36% to $18.3 billion for the three months ending June 30.

Q: What are Meta's main expenses for its AI projects?

A: Meta's main expenses for its AI projects include building infrastructure such as servers and data centers, and enhancing employee compensation packages.

Q: How has Meta's stock performed after the earnings announcement?

A: Meta's shares jumped by more than 10% in extended trading in New York following the earnings announcement. 

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