Meta, the social media giant, has reported a significant increase in revenue for the first quarter of 2025, reaching $42.3bn. The company is ramping up its investment in artificial intelligence (AI) infrastructure, which has raised concerns for software developers.
The rise in revenue was accompanied by a 14% increase in the cost of revenue, driven by higher infrastructure costs and partner payments. Meta CEO Mark Zuckerberg highlighted the growing capabilities of AI in coding, suggesting that AI could soon reach the level of a mid-level engineer.
Zuckerberg also predicted a future where every business would utilize AI business agents for customer support and sales, similar to having email addresses and social media accounts.
The company is actively leveraging AI technologies such as large language models (LLMs) to enhance its recommendation engines and deliver targeted advertisements to users.
Chief financial officer Susan Li emphasized the importance of developing efficient recommendation systems to scale up AI models effectively. This focus on AI capabilities aligns with Meta’s vision for the future of computing platforms, with glasses being identified as an ideal form factor for AI integration.
To support its AI initiatives, Meta is accelerating datacentre capacity expansion and investing in generative AI and IT infrastructure. The company aims to build a robust infrastructure footprint to enhance the quality and scale of AI services it offers.
Meta’s forecast for capital expenditure has been revised to between $65bn and $72bn, reflecting an increase in spending on datacentre infrastructure. This increase in expenditure is attributed to global supply chain uncertainties rather than specific trade tariffs.
Li emphasized the importance of optimizing the supply chain to mitigate potential cost impacts. Meta’s strategic outlook focuses on adapting to industry developments and maximizing operational efficiency in its datacentre workloads.
The company’s commitment to AI development and infrastructure expansion underscores its dedication to driving innovation and enhancing user experiences through advanced technologies.
