Meta Advances AI Strategy with In-House Search Engine and Strong Q3 Performance

BigGo Editorial Team
Meta Advances AI Strategy with In-House Search Engine and Strong Q3 Performance

Meta is making bold strides in artificial intelligence while delivering impressive financial results, marking a significant evolution in its technological capabilities and market position. The company is developing its own AI search engine while reporting substantial growth in both revenue and user engagement across its platforms.

Meta's Financial Performance and AI Investment

Meta demonstrated robust financial health in Q3 2024, with revenue climbing 19% year-over-year to reach $40.59 billion. The company's net income saw a remarkable 35% increase to $15.68 billion, with earnings per share of $6.03 exceeding market expectations. Despite this strong performance, Meta's commitment to AI infrastructure investment has led to a cautionary note about significant capital expenditure growth in 2025, with current year spending projected between $38 billion to $40 billion.

Strategic AI Development and Search Independence

Meta is actively developing its own AI search engine to reduce dependence on Google and Bing within its Meta AI platform. This strategic move includes partnerships with major news organizations, with Reuters already signed on to provide content. The company's AI chatbot has gained significant traction, reaching 500 million monthly users across various Meta products, demonstrating the success of their AI integration strategy.

Platform Growth and User Engagement

The company continues to see strong user engagement across its family of apps, with daily active users reaching 3.29 billion, marking a 5% increase. Their newest social media platform, Threads, has accumulated 275 million monthly users, though the company has tempered revenue expectations for this product in the near term. Meta's focus on efficiency has resulted in improved operating margins, reaching 43% compared to 40% the previous year.

Reality Labs and Future Outlook

While Meta's core business thrives, Reality Labs, responsible for VR and AI initiatives, reported a $4.42 billion loss on $270 million revenue. However, the company maintains its commitment to these future-focused investments, viewing them as crucial for long-term growth. Looking ahead to Q4, Meta projects revenue between $45 billion and $48 billion, representing 12% to 20% growth from the previous year.

Evolution of AI Capabilities

Meta's AI strategy is evolving beyond basic assistant functionality towards more sophisticated, autonomous systems. The company is positioning itself at the forefront of 'agentic AI' development, where AI systems can operate with greater independence and decision-making capabilities, marking a significant step forward in artificial intelligence technology.