Meta is close to achieving 'Superintelligence': Mark Zuckerberg
What's the story
Meta CEO Mark Zuckerberg has said that the company is getting closer to achieving "superintelligence." The statement comes as part of a memo released ahead of Meta's quarterly earnings report. Zuckerberg said that he has seen signs of their artificial intelligence (AI) systems improving themselves over the past few months, albeit slowly.
AI development
'Personal superintelligence' vision
Zuckerberg envisions a future where "personal superintelligence" is accessible to everyone, as opposed to other companies that focus on using superintelligence for productivity. He also acknowledged the potential safety concerns of this advanced technology. "We'll need to be rigorous about mitigating these risks and careful about what we choose to open source," Zuckerberg wrote in his memo.
Financial outlook
Meta's financial performance amid AI spending
Despite the massive spending on AI, Meta's financial performance has been better than expected. The company reported earnings per share of $7.14 on revenue of $47.52 billion, beating Wall Street's expectations of $5.92 on revenue of $44.8 billion. This quarter marks another instance in a series of consecutive quarters where Meta has surpassed Wall Street's financial expectations.
Revenue growth
Analyst insights on Meta's investments
Meta's advertising business is reaping the benefits of its AI-driven investments, which are boosting revenue. Minda Smiley, a senior analyst at Emarketer, said, "AI-driven investments into Meta's advertising business continue to pay off." However, she also warned that the firm's massive spending on its AI visions will continue to be questioned by investors who are keen to see returns.
Spending strategy
Rising expenses and talent acquisition costs
Meta has updated its guidance for future spending, expecting total expenses in 2025 to be between $114 billion and $118 billion. The company also plans to spend between $66 billion and $72 billion on capital expenditures. To build its Superintelligence Labs team, Meta has been hiring talent from rival AI companies with huge compensation packages.