Meta’s AI Investments Boost Earnings as Superintelligence Race Heats Up

Meta’s latest earnings report shows that its massive investment in artificial intelligence is starting to deliver results. The company announced quarterly earnings of $7.14 per share on $47.5 billion in revenue for the quarter ending June 30, well above Wall Street expectations. Revenue projections for the current quarter are also strong, in the range of $47.5 billion to $50.5 billion.

Following the announcement, Meta shares rose more than 9% in after-hours trading and have gained 16% since the beginning of the year. Analysts say the results indicate AI is becoming a significant revenue driver rather than just hype.

Meta CEO Mark Zuckerberg used the day to outline his vision for AI “superintelligence,” describing a future in which everyone has access to a personal AI assistant. He said such advances could make people more productive and allow more time for creativity and connection.

The company credited AI improvements, particularly in advertising, as a key factor in the quarter’s strong performance. Meta has been aggressively hiring AI talent from rivals including OpenAI, Google, and Apple, with Shengjia Zhao, one of ChatGPT’s co-creators, joining Meta as chief scientist of its new Superintelligence Labs.

Chief Financial Officer Susan Li said that hiring in high-priority areas like AI will drive headcount growth through this year and next, with compensation for AI talent becoming one of the largest expense increases.

Meta’s spending on AI infrastructure has been enormous, with capital expenditures of $17 billion in the third quarter, nearly matching Wall Street expectations. The company is betting on AI and smart glasses as central to its future, even as it faces delays on its largest Llama 4 AI model.

Zuckerberg said he believes smart glasses will be the primary computing device in the AI era, underscoring the stakes for Meta as it shifts from its metaverse ambitions toward AI dominance.

Credit: CNN Newsource

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