Meta’s big AI bet: Superintelligence push unlikely to boost short-term profits
Meta CEO Mark Zuckerberg is going all-in on superintelligence, but investors may not see the payoff just yet.
As Silicon Valley’s AI race accelerates, Meta (NASDAQ: META) has dramatically ramped up spending to secure its position in the sector. The company has poached top researchers from rivals like OpenAI, launched a new Superintelligence Lab, and invested billions in infrastructure and startups. Yet, as Meta prepares to report its Q2 earnings on Wednesday, analysts are predicting the company’s slowest profit growth in two years, News.Az reports, citing Reuters.
According to LSEG estimates, Meta’s Q2 profits are projected to rise just 11.5% year-over-year to $15.01 billion, with revenue expected to grow 14.7% to $44.80 billion, the slowest pace in seven quarters. Operating costs are set to climb nearly 9%, driven by large-scale AI investments and acquisitions.
“We view rising capex as positive given... Meta can become a one-stop shop for many marketing departments,” said Ben Barringer, Head of Tech Research at Quilter Cheviot.
Capital expenditures are also in focus. After increasing its full-year capex forecast in April, Meta could raise it again, mirroring Alphabet’s move last week, which saw a 13% bump to $85 billion for its AI-driven cloud services.
Meta’s AI strategy has gained urgency after the underwhelming performance of its latest large language model, Llama 4. In response, Zuckerberg committed hundreds of billions to build next-gen AI data centers and invested $14.3 billion in Scale AI, onboarding its high-profile CEO Alexandr Wang.
The company's new Superintelligence Lab — distinct from the existing Meta AI team led by Yann LeCun — is focused on developing AI that exceeds human intelligence, a bold and still-hypothetical concept.
Zuckerberg’s approach aims to differentiate Meta by releasing models as open source and integrating AI into consumer products like Ray-Ban smart glasses, not just enterprise tools.
Meta’s core advertising business still faces turbulence. Competition from TikTok remains fierce, and uncertainty around U.S. tariffs under President Trump’s administration is making advertisers more cautious.
While some brands have leaned on Meta’s established platforms during this period, analysts remain skeptical.
“That won’t shield the company from questions over its superintelligence ambitions and how they fit into its broader business strategy,” noted Minda Smiley, senior analyst at eMarketer.
With over 3 billion users across its platforms and a growing reliance on AI-enhanced content delivery, Meta’s long-term potential remains strong. But in the near term, the company must balance visionary AI goals with investor expectations.
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