Meta Platforms’ AI Investments Show Mixed Results
Meta Platforms (NASDAQ: META) recently unveiled its large language model, Muse Spark, as part of its significant AI push, which involves an expenditure of up to $135 billion on capital investments for 2023—up from $72 billion in 2022. Despite these investments, Muse Spark’s performance does not surpass those of industry leaders like OpenAI or Google.
In the latest quarter, Meta’s operating margin fell to 41%, down from 48% in the previous quarter, influenced by increased hiring and infrastructure costs. CEO Mark Zuckerberg has indicated that improvements in recommendation algorithms could shift the company’s revenue growth trajectory, with expectations of a revenue increase of over 20% in 2026 as engagement and ad pricing improve, supported by advances in AI technology.
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