Zuckerberg Defends AI Spending: Seeing the Returns

Published Date : 30/10/2025 

Meta CEO Mark Zuckerberg addresses concerns about the company's significant investments in AI, emphasizing the potential long-term benefits and returns. 

Mark Zuckerberg, the CEO of Meta Platforms Inc., is reiterating his commitment to heavy investments in artificial intelligence (AI), despite growing concerns about a potential bubble. During Meta's third-quarter earnings call on Wednesday, Zuckerberg addressed the company's substantial spending this year, particularly the $14.3 billion investment in Scale AI, a part of Meta's plan to revamp its AI division, now known as Superintelligence Labs.

Some skeptics worry that the spending from Meta and its competitors, such as OpenAI, is fueling a bubble. However, Zuckerberg remains confident in the long-term benefits of these investments. To support the cutting-edge AI models, Meta has been expanding its data centers and securing cloud-computing deals with companies like Oracle, Google, and CoreWeave.

Zuckerberg stated that the company is observing a pattern indicating that even more computing power will be needed than initially estimated. He believes that these growing AI investments will eventually yield significant returns. 'Being able to make a significantly larger investment here is very likely to be a profitable thing over some period,' Zuckerberg said on the call.

If Meta overspends on AI-related computing resources, the company can repurpose the excess capacity to enhance its core recommendation systems in its family of apps and ads, ensuring profitability. Along with its rivals, Meta has raised its expectations for capital expenditures. The company now projects capex to be between $70 billion and $72 billion, up from the previous guidance of $66 billion to $72 billion.

Alphabet, Google's parent company, also increased its capex range to $91 billion to $93 billion, up from a previous target of $75 billion to $85 billion. Microsoft, on its earnings call, indicated that it expects capex growth to accelerate in 2026 after initially projecting a slowdown. Alphabet's stock saw a 6% increase in extended trading, while Meta shares fell about 8%, and Microsoft's stock declined more than 3%.

Zuckerberg suggested that if Meta ends up with excess computing power, it could offer some to third parties, though this is not currently an issue. 'Obviously, if you got to a point where you overbuilt, you could have that as an option,' he said. In the worst-case scenario, Meta might end up with several years' worth of excess data center capacity, leading to a loss and depreciation of certain assets. However, the company would grow into this capacity and use it over time.

Meta's advertising business continues to grow robustly, partly due to its AI investments. 'We're seeing the returns in the core business that's giving us a lot of confidence that we should be investing a lot more, and we want to make sure that we're not underinvesting,' Zuckerberg said. Revenue in the third quarter rose 26% from the previous year to $51.24 billion, surpassing analyst estimates of $49.41 billion and marking the company's fastest growth rate since the first quarter of 2024. 

Frequently Asked Questions (FAQS): 

Q: What is Meta's new AI division called?

A: Meta's new AI division is called Superintelligence Labs.

Q: How much has Meta invested in AI this year?

A: Meta has invested $14.3 billion in AI this year, specifically in Scale AI.

Q: What are some concerns about Meta's AI spending?

A: Some skeptics are concerned that Meta's and other companies' heavy spending in AI might be fueling a bubble.

Q: What are Meta's expectations for capital expenditures?

A: Meta now expects capex to be between $70 billion and $72 billion, up from the previous guidance of $66 billion to $72 billion.

Q: How has Meta's revenue grown in the third quarter?

A: Meta's revenue in the third quarter grew 26% from the previous year to $51.24 billion, surpassing analyst estimates of $49.41 billion. 

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