Meta is building two massive data centers and spending up to $600 billion over three years, but its aggressive AI talent and infrastructure spending hasn’t brought in meaningful revenue yet.
Meta’s quarterly earnings showed a $7 billion year-over-year jump in operating expenses and nearly $20 billion in capital expense. Mark Zuckerberg said the spending was just getting started, aiming to accelerate innovation and get ahead of the curve on compute power for AI research.
However, investors are nervous about Meta’s strategy, with its share price plummeting 12% after the earnings call. The lack of clarity on what specific products or revenue streams the company is working towards is causing concerns.
Sam Altman from OpenAI points to his company’s fast-growing consumer service and $20 billion annual revenue, but Meta doesn’t have a similar product. Its most powerful AI tool, the Meta AI assistant, has more than 1 billion active users, but it’s unclear if this can compete with ChatGPT.
Meta is focusing on future projects, such as novel models and products, but so far, there are no clear indications of what these plans will look like or when they’ll be launched. The pressure is on Meta to deliver a clear strategy for its AI investments.
Source: https://techcrunch.com/2025/11/02/meta-has-an-ai-product-problem