Despite having almost nothing to show from his enormous spending on AI, Meta CEO Mark Zuckerberg is doubling down.
Earlier this week, the social media company announced during its second quarter earnings call that it was raising capital expenditures from $125 billion to at least $130 billion, a clear sign that it’s not taking its foot off the pedal.
Yet amid renewed concerns that the tech industry may be nearing the edge of a cliff thanks to its obsession with building out enormously expensive data centers without a clear path to profitability, investors sent back a clear signal in return. Meta’s shares nosedived following its announcement, plummeting over 11 percent over the last five days alone.
According to Zuckerberg, all that extra AI spending was “accelerating every part of our core business.” He also claimed that some of the tech would be sold off to other businesses.
