Meta Platforms, formerly Facebook, has grown to over 3.5 billion daily active users, making it a social media powerhouse. The company is investing heavily in AI research and development, including advanced conversational AI assistants. Despite strong financials, Meta’s AI investments are pressuring profitability, with the Reality Labs division posting significant losses.

Meta’s primary revenue stream comes from targeted advertisements on its platforms, generating over $60 billion annually. The company is also making money from AI-powered advertising tools. In Q3 2025, Meta reported a 26% revenue increase to $51.24 billion, driven by ad impressions and user engagement. However, a one-time tax charge resulted in a significant miss on earnings expectations.

Meta’s recent announcement of Meta Superintelligence Labs (MSL) and a joint venture for the Hyperion data center campus reflect its strategic focus on AI. The company plans to significantly increase capital expenditures in 2026 for AI infrastructure. Despite profitability pressures, Meta remains a key player in the tech industry with a vast user base and innovative AI initiatives.

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