Just ahead of Meta’s quarterly earnings announcement, CEO Mark Zuckerberg laid out an ambitious vision: bringing high-powered artificial intelligence—what he now calls “superintelligence”—into the daily lives of millions.
For months, Meta has been aggressively investing in AI. From snapping up top engineers to acquiring emerging startups and planning data centers the size of Manhattan, the tech giant has made it clear that AI is its central focus. And, according to Zuckerberg, those efforts are beginning to bear fruit.
In a memo released Wednesday, Zuckerberg shared that Meta’s AI systems are starting to improve on their own. “The improvement is slow for now, but undeniable,” he wrote. “Developing superintelligence is now in sight.”
Though he didn’t define exactly what separates “superintelligence” from standard AI, Zuckerberg acknowledged the potential risks it brings. He emphasized that Meta would need to proceed cautiously—particularly around what aspects of its AI technology it chooses to open-source.
Crucially, Zuckerberg positioned Meta’s approach as distinct. While other companies aim to use AI to boost productivity and automate work, Meta, he claimed, wants to make AI personal—accessible to individuals rather than just corporations.
“The rest of this decade will likely define how this technology evolves,” he wrote, “and whether superintelligence becomes a force for personal empowerment or something more disruptive.”
Investors See Promise—But Still Have Questions
Wall Street seems to be backing Zuckerberg’s big bet. Meta’s earnings blew past expectations, prompting a double-digit stock price surge. But enthusiasm is tempered with scrutiny—investors want to know if the company’s massive AI spending will eventually translate into reliable returns.
Meta reported earnings of $7.14 per share on $47.52 billion in revenue for the second quarter, beating projections of $5.92 per share on $44.8 billion. It also forecasted third-quarter revenue between $47.5 and $50.5 billion.
Despite the positive numbers, questions linger. Meta spent $27.07 billion in total during Q2—up 12% year over year—with capital expenditures alone hitting $17.01 billion. That’s a hefty price tag, even for a tech titan.
For 2025, Meta now expects total spending to land somewhere between $114 billion and $118 billion, a slight uptick from earlier guidance. Its capital expenditures for the year are expected to range from $66 billion to $72 billion. Notably, even these projections have been revised upward multiple times.
The company attributed its spending growth largely to infrastructure. “The largest single driver of growth will be infrastructure costs,” Meta stated, citing increased depreciation and operating expenses as it scales its data centers. Compensation for new hires—particularly in technical roles—is expected to be the second-largest cost driver.
A Talent War and a Vision for AI Glasses
Meta is also heavily investing in talent. After taking a $14.3 billion stake in Scale AI and appointing its CEO Alexandr Wang as chief AI officer, Meta has been raiding rival firms like Apple and GitHub for top-tier engineers. Some compensation offers reportedly exceeded $200 million.
“To win the superintelligence race requires the best of the best,” said Forrester analyst Mike Proulx. “Meta’s deep pockets give it a serious edge in attracting the industry’s top minds.”
Meanwhile, Zuckerberg remains enthusiastic about Meta’s Reality Labs division, even though it brought in a relatively modest $370 million in Q2. He drew a comparison between AI glasses and contact lenses, arguing that in the near future, not having AI-enhanced glasses could leave users at a “cognitive disadvantage.”
Advertising Keeps the Engine Running
Despite all the focus on AI, Meta’s core business—advertising—continues to thrive. The company generated $46.6 billion in ad revenue this quarter, a substantial jump from $38.3 billion a year ago. However, WhatsApp, a newer ad platform, isn’t expected to be a major contributor any time soon.
“We expect WhatsApp ads and status to earn less on average than Facebook or Instagram,” CFO Susan Li said, citing limited data for ad targeting and the platform’s popularity in less monetized markets.
In the end, Meta’s vision for superintelligence may still be on the horizon, but it’s already reshaping the company—and the tech landscape—in real, costly ways. Whether those costs lead to a transformative breakthrough or an expensive gamble remains to be seen.