Meta posts big profit, plans massive AI investment / Photo: Kirill KUDRYAVTSEV - AFP/File
Meta posts big profit, plans massive AI investment
Social media giant Meta on Wednesday reported surging profits and revenue for 2024, announcing ambitious plans to expand its artificial intelligence infrastructure in the year ahead.
The parent company of Facebook, Instagram, and WhatsApp saw its net income soar 59 percent to $62.36 billion for the full year, while fourth-quarter profits jumped 49 percent to $20.84 billion.
Revenue reached $164.5 billion, up 22 percent from 2023, boosted by stronger advertising performance as ad prices rose 10 percent and impressions increased 11 percent across its platforms.
"We continue to make good progress on AI, glasses, and the future of social media," CEO Mark Zuckerberg said, expressing optimism about scaling these initiatives in 2025.
The solid performance comes amid significant shifts in Meta's content policies intended to endear the company to US President Donald Trump.
The company recently announced the end of its US fact-checking program aimed at combating misinformation, a move that followed criticism from conservative voices who viewed such efforts as censorship.
"We now have a US administration that is proud of our leading companies, prioritizes American technology winning, and that will defend our values and interests abroad," Zuckerberg told anlayats.
Meta has also scaled back diversity initiatives and relaxed content moderation rules on its platforms, particularly regarding certain forms of speech -- changes that could potentially concern major advertisers who are wary of having their ads appear alongside divisive content.
- User growth -
The company's user base continued to grow, reaching 3.35 billion daily active users across its platforms in December 2024, a 5 percent increase year-over-year.
Looking ahead, Meta plans massive infrastructure investments, with expected capital expenditures of $60-65 billion for 2025, primarily supporting AI initiatives. Total expenses are projected to reach $114-119 billion.
"In AI, I expect this is going to be the year when a highly intelligent and personalized AI assistant reaches more than 1 billion people, and I expect Meta AI to be that leading Assistant," Zuckerberg said.
The company expanded its workforce by 10 percent to 74,067 employees in 2024, with plans for further growth in technical roles focused on AI development and infrastructure.
Meta last month said it will dismiss 3,600 employees (5 percent of its workforce) identified as low performers, with the intention to bring in new talent to strengthen the company.
While Meta's stock has performed strongly, the company faces both regulatory challenges and emerging competition.
The rise of Chinese startup DeepSeek's more economical AI model has reportedly prompted Meta to establish war rooms to study and potentially adapt the innovations for its own Llama AI models.
The company projects first-quarter 2025 revenue between $39.5-41.8 billion, representing growth of 8-15 percent year-over-year.
M.Allan--RTC
