#Meta

Despite Meta’s planned $14.3B investment interpreted by some as an acquihire and subsequent paused collaborations with OpenAI, Google, and xAI, Scale AI’s CFO Dennis Cinelli insists the company is thriving. He claims recent significant deals and growth in both its data and applications businesses, including contracts with the U.S. Department of Defense, have resulted in revenue “well into the nine figures,” approaching $1 billion. Scale AI is expanding and hiring, aiming to solidify its position in the AI development landscape.

Tech giants like Meta, Amazon, Alphabet, and Microsoft report strong digital ad revenue growth, defying economic anxieties. Meta leads with a 26% surge, driven by AI-enhanced ad targeting. Amazon’s ad unit grew 24%, surpassing its AWS cloud unit. Alphabet’s ad sales rose 13%, while Microsoft’s search advertising increased 14%, boosted by AI. Despite increased AI investments, some investors question the monetization strategies of companies like Meta. The upcoming holiday season’s impact on ad budgets is a key factor to watch.

Meta CEO Mark Zuckerberg is doubling down on AI, allocating $14.3 billion to Scale AI and restructuring Superintelligence Labs. This significant capital expenditure fuels Meta’s AI capabilities and data center expansion, partnering with Oracle, Google, and CoreWeave. While Meta projects long-term returns, analysts express concerns about escalating AI spending and a potential valuation bubble. Despite increased capital expenditure guidance, market reaction was mixed, with some uncertainty about profitability and returns. Meta’s revenue growth, driven by AI, supports its confident investment strategy.

The European Commission preliminarily finds TikTok and Meta possibly violated the Digital Services Act (DSA) due to inadequate data access for researchers. Meta’s Facebook and Instagram allegedly lack effective mechanisms for reporting illegal content. Both companies dispute the findings, citing efforts to comply. TikTok also raises concerns about DSA-GDPR conflicts. The EU emphasizes data access for understanding social impacts. If violations are upheld, fines could reach 6% of global turnover. This underscores increasing EU regulatory pressure on Big Tech to promote transparency and user rights.

Meta is reducing its risk organization workforce, shifting towards AI-driven automation for compliance reviews. This follows a $5 billion FTC fine and aligns with broader workforce adjustments, including layoffs in the Superintelligence Labs AI unit. Meta emphasizes that AI aims to streamline processes and augment human capabilities, not replace judgment. The company says AI will automate applying rules and not make the decision on risk itself. This move mirrors similar strategies at companies like JPMorgan and Salesforce, raising questions about AI’s impact on the job market.

Meta Platforms and Blue Owl Capital have formed a $27 billion joint venture to finance Meta’s “Hyperion” data center project in Louisiana. Blue Owl holds an 80% stake, providing $7 billion in cash, while Meta retains 20% and manages construction. Hyperion, Meta’s largest data center, will support its growing AI initiatives. The Louisiana facility, slated for completion by 2030, could consume twice the electricity of New Orleans at peak demand. This deal mirrors a broader trend of tech giants investing heavily in AI infrastructure.

Meta is launching new parental controls for its platforms, allowing parents to oversee their teens’ interactions with AI characters. These tools will enable parents to disable AI chats, block specific characters, and view activity reports. The move follows increased scrutiny and an FTC inquiry into the potential risks of AI chatbots to young users, stemming from reports of inappropriate AI interactions with minors. Meta aims for a phased rollout of the controls starting early next year, following refinements to AI safety protocols already underway. OpenAI is also bolstering teen safety measures.

EssilorLuxottica’s Q3 revenue surged, boosted by the success of Ray-Ban Meta smart glasses developed in partnership with Meta. Wearables contributed significantly to the 11.7% sales increase. The collaboration expands with Oakley and Prada-branded versions in development. Executives predict glasses will replace many smartphone functionalities. Meta’s AI-powered glasses and those from competitors like Alphabet and Alibaba are transforming personal computing and eyewear, creating a market where fashion meets technology. EssilorLuxottica anticipates exceeding its wearables targets and foresees revenue from hardware, lenses, and AI services.

Instagram launched “Rings,” awarding 25 creators a gold ring and profile badge, chosen by figures like Adam Mosseri and Spike Lee. This comes as Meta ended its creator bonus program and brand deals decline, raising questions about Meta’s creator support strategy. While offering profile customization, the initiative emphasizes recognition over direct compensation. With rivals offering revenue-sharing and a decline in brand deals, the long-term viability of symbolic rewards remains uncertain for creators needing reliable income.

Meta is expanding beyond advertising with Business AI, an AI-powered platform for businesses to enhance customer engagement. Launched at the 2025 Meta Connect conference, it enables personalized recommendations and faster purchasing via conversational interactions across Facebook, Instagram, and retailer websites. Integrations with CRM systems (Salesforce, Microsoft, etc.) are planned. Business AI will initially be a free add-on to Meta ad campaigns, with pricing for website integration. WhatsApp and Messenger integration are coming soon.