Meta, the parent company of Facebook and Instagram, announced a surprising profit of $13.5 billion for the latest quarter, leading to a nearly 7% increase in its stock price. Revenue for the April-June period hit $39 billion, exceeding expectations and reflecting a 22% year-over-year increase.
CEO Mark Zuckerberg expressed confidence in Meta AI, predicting it will become the most widely used AI assistant globally by year-end. He highlighted the release of the first frontier-level open-source AI model and positive traction with Ray-Ban Meta AI glasses.
This strong performance contrasts with other major tech companies, some of which reported disappointing results. For instance, Microsoft’s stock fell 8% after a sluggish growth report for its Azure cloud services. In the midst of rocky trading on Wall Street, analysts have suggested that the excitement surrounding AI may be overstated.
Zuckerberg emphasized the importance of open-source technology in AI development, arguing that it will foster accessibility and ensure a more equitable distribution of its benefits. He believes AI has immense potential to enhance productivity and drive economic growth while also contributing to advancements in medical and scientific research.
