Social media giant meta platforms say its profits have increased and it is pumping billions of dollars more in Artificial Intelligence (AI) projects.
The firm – who owns Facebook, Instagram and WhatsApp – says that by the end of June for three months, the revenue increased 22% from the same period last year to $ 47.5BN (£ 35.86bn), while the profits increased from 36% to $ 18.3BN.
Expenditure is also increasing at the same time – from 12% to $ 27bn – because the company invests money to fulfill the AI ambitions of Chief Executive Officer Mark Zuckerberg, and the cost is expected to increase only.
Meta says that the cost of construction of infrastructure including server and data center, and the salary package of workers will be its biggest expenses.
Before the announcement of Meta’s earnings on Wednesday, Zuckerberg posted a video on Instagram, in which he described his plans to develop his plans, which he calls “AI Superintendent” that overtakes human intelligence “to” solve complex problems “.
He also said that the meta will create “personal superintendent” that uses advanced AI for everyday tasks such as remembering users such as wedding anniversary and then helping or giving reservation or gifts such as ordering a gift.
Mike Puulux from Research and Advisory firm Forester said that the Meta is “helping the future-proof itself as a development company” in the incident that its current offerings are staggering.
After the release of the Meta Lama 4, rival artificial intelligence developers such as Openi and Google are trying to catch with some users and investors disappointed.
It has offered $ 100M pay package to remove AI talent from top talent. It has spent more than $ 14bn on stake in Artificial Intelligence firm Scallee and has brought its Chief Executive to help fulfill its efforts in Alexandra Wang.
Zuckerberg’s strategy has been to use the strength of the main businesses of Meta to help fund its AI ambitions.
He said that 3.4 billion worldwide uses at least one meta app every day.
Meta has also deployed AI to improve its advertising business.
But the cost of development of superintending has raised concerns among some analysts.
Mindy Smiley of Market Research firm Emarketer said, “AI-operated investment in Meta’s advertising business continues, increasing its revenue, the company put billions of dollars of AI ambitions in ambitions to supervise.”
He said, “But Meta’s excessive spending on Meta’s AI vision will continue to question investors and investigate, who are eager to see the returns,” he said.
Meta’s shares increased extended trading in New York by more than 10% after the announcement of its earnings.
