Meta’s AI Investments Drive Costs Higher Amid Slowing Growth

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2025-07-30 00:03:01

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Meta's second-quarter earnings loom with Wall Street anticipating an 11.5% profit rise to $15 billion—the company's slowest growth in two years. Revenue is expected to climb 14.7% to $44.8 billion, yet this marks Meta's weakest pace since early 2023. Operating costs have surged nearly 9%, raising investor concerns about Zuckerberg's aggressive AI strategy.

The company recently invested $14.3 billion in Scale AI, recruiting CEO Alexandr Wang to lead its new 'Superintelligence Lab.' Despite failing to acquire SAFE Superintelligence, Meta has poached top AI talent from OpenAI, Apple, and Google, including ChatGPT co-creator Shengjia Zhao. Zuckerberg's bet on AI dominance comes at a steep short-term cost, with returns yet to materialize.

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