Meta shows strong growth as AI spending surges [Video]

Facebook owner Meta saw net income and revenues top expectations on Wednesday as the company said it would expand investments into artificial intelligence, drawing nervousness from investors.

The social media behemoth, which is also the parent company of Instagram and WhatsApp, said net profit in the third quarter was $15.7 billion — up 35 percent on the same period last year.

Revenues rose 19 percent to $40.6 billion, slightly higher than analyst estimates.

But investors sent Meta shares lower in after hours trading over the outlook for AI spending in the months ahead and another big loss at its virtual and augmented reality arm, Reality Labs.

“Our AI investments continue to require serious infrastructure, and I expect to continue investing significantly there, too,” Meta’s founder and chief executive Mark Zuckerberg told analysts.

“We haven’t decided on a final budget yet, but those are some of the directional trends,” he added.

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