Metas AI winnings skyrocket; Will Deepseek’s cheap technology take over them?
4 mins read

Metas AI winnings skyrocket; Will Deepseek’s cheap technology take over them?

San Francisco: Social Media Giant Meta reported increasing profits and revenues for 2024 on Wednesday and announced plans to expand its artificial intelligence (AI) infrastructure in the future.

The raised projection about the company’s AI Future sent shares in the company that nails with as much as five percent in the post -retail, although this was later two percent.

Get Latest Mathrubhumi updates in English

CEO Mark Zuckerberg said he believed that Metas AI powers would make it a world leader in technology, even though he warned that the delivery of the substantial investments needed would “take time.”

Facebook, Instagram and WhatsApp’s parent company saw their net profit 59 percent to $ 62.36 billion for the entire year, while the winnings for the fourth quarter jumped 49 percent to $ 20.84 billion.

Revenue reached $ 164.5 billion, an increase of 22 percent from 2023, increased from stronger advertising performance as advertising prices rose by 10 percent and impressions increased by 11 percent above their platforms.

The fixed performance comes in the midst of significant changes in Meta’s content policy intended to love the company to US President Donald Trump.

The company recently announced the end of its US fact control program aimed at fighting error information, a feature that followed criticism from conservative voices that looked at such efforts as censorship.

Zuckerberg said that 2025 would be a “big year to redefine our relationship with governments.”

“We now have an American administration that is proud of our leading companies, prioritizes American technology that wins, and will defend our values ​​and interests abroad,” Zuckerberg told analysts.

Meta has also scaled back diversity initiatives and relaxed rules for moderation of content on its platforms, especially in certain forms of speech – changes that can potentially affect large advertisers that are careful about having their ads appear together with dividing content.

At the analyst call, Metas CFO said the changes had not affected advertising revenue.

The company’s user base continued to grow and reached 3.35 billion daily active users over their platforms in December 2024, an increase of 5 percent from the previous year.

Given forward, meta-massive infrastructure investment, with expected capital expenditure of $ 60-65 billion, plans for 2025, which mainly supports AI initiatives. Total spending is estimated to reach $ 114-119 billion.

“In AI, I expect this to be the year when a very intelligent and personal AI assistant reaches more than 1 billion people, and I expect Meta AI to be the leading assistant,” Zuckerberg said.

But he warned the investments would “be expensive for us to serve all these people because we earn many people.”

Metas Reality Labs Unit, which includes its virtual reality efforts, published a loss of movement than expected than $ 4.97 billion, while generating $ 1.1 billion in sales in the fourth quarter.

The company expanded its labor force 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 would dismiss 3,600 employees (5 percent of the labor force) identified as low -performing to get new talent to strengthen the company.

While Metas Lager has performed strongly, the company faces both regulatory challenges and new competition.

The increase in Chinese start Deepseek’s more economic AI model has reportedly been able to establish war rooms to study and potentially adapt the innovations for their own Llama AI models.

The company projects revenues from the first quarter of 2025 between $ 39.5-41.8 billion, which corresponds to a growth of 8-15 percent from the previous year.

This was a lighter vision than expected and “indicates that Meta’s latest changes in content moderation may have an impact on revenue in the coming quarter,” says Debra Aho Williamson from Sonata Insights. AFP