4 Key Takeaways From Meta's Earnings Call

After Meta Platforms (META) reported second-quarter results that beat analysts' estimates, CEO Mark Zuckerberg gave investors an update connected nan tech giant's artificial intelligence (AI) developments, outlook, and much successful nan company's net call.

Meta AI Could Be 'Most Used AI Assistant' by Year End, Though Monetization May Be Years Out

Meta highlighted respective of its AI-related developments successful nan call, including advancement successful take of Meta AI, nan company's AI adjunct that is integrated into Facebook, Instagram, and WhatsApp.

Zuckerberg said Meta AI, which rivals offerings from Microsoft-backed (MSFT) OpenAI and Alphabet's (GOOGL) Google, is "on way to execute our extremity of becoming nan astir utilized AI adjunct by nan extremity of nan year."

However, it whitethorn beryllium immoderate clip earlier Meta AI tin beryllium monetized, pinch Zuckerberg telling analysts that monetization isn't expected for "years."

Investing successful AI Now, To Avoid Falling Behind Later

Meta, on pinch galore of its big tech peers, has boosted spending to put successful AI infrastructure, raising concerns astir whether AI's costs will salary off.

In its second-quarter update, nan institution lifted nan little extremity of its outlook for full-year capital expenditures (CapEx) to $37 cardinal from $35 billion, pinch nan precocious extremity unchanged astatine $40 billion. Meta CFO Susan Li besides said Meta expects "significant CapEx maturation successful 2025."

Zuckerberg told investors, "I'd alternatively consequence building capacity earlier it is needed, alternatively than excessively late, fixed nan agelong lead times for spinning up caller infrastructure."

Zuckerberg Says He's Bullish connected Open-Source AI

A longtime supporter of open-souce AI, Zuckerberg said he's still "bullish connected unfastened source," calling it "better for developers, for Meta, and for nan world."

While Meta doesn't straight profit from promoting open-source tools, AI openness could thief nan institution summation much power and amended compete pinch makers of closed AI models for illustration OpenAI, Google, and Anthropic.

The CEO said Meta has "saved billions of dollars" from erstwhile open-source computing projects.

Meta precocious unveiled Llama 3.1, its astir tin open-source AI exemplary yet, and Zuckerberg said nan institution is already moving connected Llama 4, which Meta intends to make "the astir precocious successful nan manufacture adjacent year."

Leveraging AI To Boost Meta's Advertising Business

Meta indicated that its AI investments will use advertisers and its advertisement business, which drives a important information of revenues.

Meta reported advertizing gross accrued to $38.33 billion, amended than analysts expected, pinch higher mean prices per advertisement and much advertisement impressions crossed its apps.

Zuckerberg said that on pinch improving contented proposal engines to boost engagement, nan company's AI offerings are besides making advertizing "more effective."

Li said that optimizing ads utilizing AI devices to find which ads to show users yet amended advertisement capacity and nan personification experience.

Shares of Meta were up complete 7% astatine $510.25 arsenic of 7:45 p.m. ET Wednesday pursuing nan company's net call.