Meta Q2 2024 results show growth in AI spending

Meta easily beat Wall Street estimates for the second quarter of 2024, but warned investors that it was still losing billions on its “Reality Labs” unit and added that the company expected to spend even more next year as it built out its artificial intelligence division.

“We now expect significant capital expenditure growth in 2025 as we invest in AI research and product development efforts,” the company wrote in its earnings report. It also warned of an “active regulatory landscape, including increasing legal and regulatory headwinds in the EU and the U.S., which could significantly impact our business and financial results.”

“We had a strong quarter, and Meta AI is on track to be the most used AI assistant in the world by the end of the year,” said Mark Zuckerberg, founder and CEO of Meta. “We’ve shipped the first open-source AI model at a pioneering level, continue to see good traction with our Ray-Ban Meta AI glasses, and are driving strong growth across our apps.”

The company reported revenue of $39.1 billion and net income of $13.5 billion in the second quarter, representing double-digit growth compared with a year earlier.

More to come.