Meta CEO Mark Zuckerberg emphasized the importance of investing heavily in artificial intelligence during the company’s third-quarter earnings call. Meta has spent $14.3 billion on AI, leading skeptics to worry about a potential bubble in the industry. The company is building data centers and signing cloud computing deals to support its AI initiatives.

Zuckerberg stated that Meta will likely need more computing power than initially estimated for its AI projects, but believes the investments will be profitable in the long run. The company can repurpose excess computing capacity if needed, potentially improving core recommendation systems. Meta, Alphabet, and Microsoft have all increased their capital expenditure expectations.

While Alphabet’s stock rose after increasing its capex range, Meta’s shares fell around 8%, and Microsoft dipped over 3%. Zuckerberg mentioned the possibility of offering excess computing power to third parties in the future, but currently, Meta’s advertising business is thriving due to its AI investments. The company reported a 26% revenue increase in the third quarter, surpassing analyst estimates.

Read more at CNBC: Meta CEO Mark Zuckerberg defends AI spend: ‘We’re seeing the returns’