Meta Platforms (META) reported third-quarter earnings that beat analysts’ estimates. artificial intelligence (AI) it reduced demand and raised its estimates for how much money it plans to spend investing in emerging technology this year.

Facebook and Instagram’s parent company reports $40.59 billion revenuesincreased from $34.15 billion in the same period last year to over $40.27 billion analysts were expectingAccording to estimates compiled by Visible Alpha. Meta generated $15.69 billion in revenue net incomeIt rose to $11.58 billion, better than the $13.58 billion analysts had predicted.

Meta Raises the Lower Bound of Spending Estimates When Investing in Artificial Intelligence

Advertising revenue, which accounts for the bulk of Meta’s revenue, rose 18.6% to $39.89 billion, benefiting from the tech giant’s advances; this was slightly above estimates of $39.56 billion. artificial intelligence (AI).

“We had a good quarter thanks to the advancement of AI in our applications and across our business,” CEO Mark Zuckerberg said in a statement, adding that the company saw “strong momentum with Meta AI, Llama adoption, and AI-powered glasses.”

The results show that many major tech companies, including Meta, They spend billions of dollars The use of artificial intelligence will increase results. The company raised the lower range of its full-year outlook capital expenditure While Meta invested in artificial intelligence, this figure increased from $37 billion previously to $40 billion, and from $38 billion to $40 billion.

Meta said it expects revenue of $45 billion to $48 billion in the fourth quarter, while analysts expected about $46.34 billion.

Meta shares fell 0.8% in extended trading following the announcement. They were up 67% in 2024 through Wednesday’s close.