Meta's Bold Move Towards AI Superintelligence: Is It a Game-Changer or a Gamble?

Imagine a world where your devices understand you better than your best friend—sounds like science fiction, right? But that’s exactly the ambitious vision Mark Zuckerberg is chasing as Meta embarks on a monumental spending spree in pursuit of what he calls “superintelligence.”
For the past month, Meta has been aggressively acquiring AI startups and poaching top talent from competitors while also planning to construct data centers that are the size of Manhattan. This is not just a side project; it’s a full-on revolution in how we engage with technology.
In a recent memo released ahead of the company’s quarterly earnings report, Zuckerberg laid out his grand ambitions. He shared that, “Over the last few months we have begun to see glimpses of our AI systems improving themselves.” While he admits the progress is currently slow, he feels confident that true superintelligence is now within reach.
However, the details remain vague, especially regarding what constitutes this “superintelligence” and how it differs from standard AI. Zuckerberg warned of “novel safety concerns” that would arise with such advancements, emphasizing the need for rigorous safety measures and discretion about what they choose to make public.
What sets Meta apart, according to Zuckerberg, is its goal to deliver “personal superintelligence to everyone,” as opposed to merely enhancing productivity or automating work. This ambition could turn the next decade into a pivotal period determining whether AI serves to empower individuals or threatens to displace large segments of society.
Investors are anxiously watching Meta's every move, keen to see if this massive investment translates into financial success. The social media giant, which owns WhatsApp, Instagram, and Facebook, is set to report its second-quarter earnings, and Wall Street is buzzing with expectations. Analysts predict earnings per share to hit $5.92 with revenues soaring to $44.8 billion. The question at the forefront of everyone’s minds is whether this revenue can offset the significant expenditures the company is incurring.
David Meier, a senior analyst at the Motley Fool, pointed out that Meta must convert its vast revenue into cash flow to fuel its ambitious AI investments. Despite the hefty spending on AI, the company has consistently surpassed Wall Street's financial expectations, but the upcoming report could reveal how sustainable this trend is.
Building the infrastructure for superintelligence isn’t cheap. Meta has projected its total expenses for 2025 to be between $113 billion and $118 billion, with capital expenditures expected to range from $64 billion to $72 billion. These figures highlight the scale of Meta's ambition to lead in the AI space.
In its quest for talent, Meta has made significant investments, including a whopping $14.3 billion into Scale AI for nearly half of the company, while also appointing its CEO, Alexandr Wang, as Meta’s chief AI officer. Reports indicate that Meta is luring engineers and top-tier talent from industry rivals like Apple and GitHub with jaw-dropping compensation packages, some reportedly exceeding $200 million.
Mike Proulx, a research director at Forrester, commented, “To win the superintelligence race, it requires the best of the best talent, and Meta has been on a roll when it comes to recruiting top AI talent.” With such financial leverage, Meta is clearly willing to spare no expense in building its AI empire.
As the company gears up for its earnings report, analysts will closely examine how its primary revenue source—advertising—is performing. With $38.3 billion generated from advertising in the previous quarter, attention will also shift towards Meta's recently unveiled approach to monetizing WhatsApp, which had traditionally resisted advertisements until this June. The progress in this area could be critical for Meta as it navigates this new terrain.