In today&#x27;s deep dive, Zaid breaks down Meta&#x27;s new AI playbook to actually make money from AI and justify their $145 BILLION capex.<br>Over the last two weeks, Meta revealed plans to become an AI cloud provider and launched a coding model to take on OpenAI and Anthropic<br>Zaid gets into whether launching a cloud side business actually fixes Meta&#x27;s AI problem with Wall Street, or just proves the company isn&#x27;t sure the core bet pays off.

Deep Dive: How Meta Plans to Make Money from AI

The Rundown

Welcome back to The Rundown for another Weekend Deep Dive. Today, we are talking about Meta and their new plan to actually make money from AI. Meta has been under pressure from investors to justify the billions of dollars in AI capex spending, and this week they showed off what they planned to do. Meta is getting into the cloud business to rent out AI computing power. They're also jumping into the AI coding market to go after Anthropik and OpenAI. And they also

ship their first ever image model. So in today's episode, we'll dig into the latest AI pivot coming from Meta and whether it'll be enough to convince Wall Street that Zuck isn't just lighting hundreds of billions of dollars on fire again. We got a great one for you today. Let's dive in. Before we get into Meta's new AI monetization strategy, you have to understand why Meta is spending hundreds of billions of dollars on AI in the first place.

See, throughout Meta's history, there have been a few make or break moments for the company. There was the shift from desktop computers to smartphones, then TikTok came along and threatened to steal an entire generation of users. Both times Wall Street panicked, but both times Zuckerberg navigated the company through it and copied whatever feature he needed to copy. And Meta honestly came out stronger on the other side.

And AI seems to be the latest make or break moment for the company. So the thing is, Meta still makes 98% of its revenue from ads shown to three plus billion people that use Instagram and Facebook every day. And AI is really good at predictions. So having smarter AI models will help Meta recommend better content to users.

Deep Dive: How Meta Plans to Make Money from AI

Read the full transcript

The candid version is on a podcast,
not the earnings call.

Deep Dive: How Meta Plans to Make Money from AI

Read the full transcript

The candid version is on a podcast, not the earnings call.

The candid version is on a podcast,
not the earnings call.