Meta CEO Calls Consumer AI ‘One of the Most Transformative Products We’ve Made’
For those expecting Meta Platforms Inc. to scale back its aggressive spending after the DeepSeek news, think again.
Not only did Meta (META +0.32%) reaffirm its capital expenditure forecast of $60 billion to $65 billion for the year—first shared by CEO Mark Zuckerberg on Facebook last week—but the company also pledged continued heavy investments in artificial intelligence for the long term.
During the earnings call, Zuckerberg emphasized Meta’s commitment to AI, stating the company will invest “hundreds of billions of dollars” in AI infrastructure over time.
Meta’s stock rose 2.3% in after-hours trading following a mixed earnings report and outlook.
Zuckerberg acknowledged that he often describes each year as pivotal, but this time, he believes “the trajectory for most of our long-term initiatives will become much clearer by the end of the year.” A major part of that vision is Meta AI, the company’s consumer AI product, which he aims to put in the hands of over a billion users by the end of 2025.
“I continue to think that this is going to be one of the most transformative products that we’ve made,” Zuckerberg stated.
Meta’s bullish stance on AI helped counterbalance its cautious first-quarter guidance. A strong U.S. dollar poses a headwind for multinational companies like Meta, which anticipates significant currency-related pressure.
For Q1, Meta projects revenue between $39.5 billion and $41.8 billion, with the midpoint slightly below analysts’ expectations of $41.7 billion, according to FactSet.
Despite this, Meta’s fourth-quarter earnings had notable highlights. Revenue surged 21% year-over-year to $48.4 billion, surpassing analysts’ projections of $47.0 billion. The company reported a 6% increase in ad impressions and a 14% rise in the average price per ad.
Separately, before Meta’s earnings release, The Wall Street Journal reported that the company had agreed to settle a lawsuit with former President Donald Trump over his account suspension following the January 2021 U.S. Capitol riot. Most of the $22 million settlement will go toward Trump’s presidential library, according to a Meta spokesperson.
