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Meta Leans Into AI and Subscriptions to Future-Proof Its Ecosystem

  • Meta plans to increase spending on AI data centers to embed the technology in its family of apps, with a capital expenditure of $64 billion to $72 billion.
  • Meta's CEO, Mark Zuckerberg, highlighted the transformative power of AI and the company's focus on improving ads, enhancing business messaging, and developing AI chatbots.
  • Meta reported an increase in net income, revenue, and active users, with its Reality Labs division experiencing operating losses despite growth in sales of smart glasses.
  • Meta faces challenges in Europe due to the Digital Markets Act violations, expecting significant impacts on its European business and revenue by the third quarter of 2025.

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