Meta Platforms chief Mark Zuckerberg has defended the company’s aggressive spending on artificial intelligence, even as the strategy weighed on its share price despite strong quarterly earnings.
The social media giant increased its capital expenditure forecast for the year to between $125 billion and $145 billion, but did not clearly outline how the investment would translate into profits. The announcement unsettled investors and contributed to a drop of more than six per cent in the company’s shares.
Speaking during an earnings call, Zuckerberg said the investments reflect a long-term bet on building tools that matter to users, particularly in the rapidly evolving AI space.
“The way to think about the investment is that we’re making a bet on the individual things that people care about, and that people are going to be more important in the future,” he said.
He pointed to the growing trend of “agentic” AI—systems capable of independently carrying out tasks on behalf of users—as a key focus area. However, he stressed that quality remains a priority over speed to market.
“There are a lot of agents out there that people are building for different things, and there aren’t that many that I would want to give to my mother,” Zuckerberg noted.
He also highlighted a new Muse Spark AI model developed by Meta’s “Superintelligence Lab,” which is expected to power features across its platforms, including smart glasses and advertising systems.
Unlike rivals such as Amazon, Microsoft and Google, which generate revenue by selling AI-powered cloud services, Meta’s AI push is not yet directly tied to a clear revenue stream.
The company reported expenses of $33.4 billion for the quarter as it ramps up infrastructure investments and recruits top AI talent in pursuit of “superintelligence.”
Despite the rising costs, Meta posted strong financial results, with profit reaching $26.8 billion on revenue of $56.3 billion, beating analysts’ expectations.
However, investor concerns about the scale of spending and uncertain returns continue to cast a shadow over the company’s near-term outlook.
