Mark Zuckerberg announced Meta quarterly earnings report
Just shared Meta’s quarterly earnings report. We’ve had a strong quarter both in terms of our business and community — and I’m excited to build personal superintelligence for everyone in the world. Here’s the transcript of what I said:
We had another strong quarter with more than 3.4 billion people using at least one of our apps each day — and strong engagement across the board. Our business continues to perform very well, which enables us to invest heavily in our AI efforts.
Over the last few months we have begun to see glimpses of our AI systems improving themselves. The improvement is slow for now, but undeniable. Developing superintelligence — which we define as AI that surpasses human intelligence in every way — we think is now in sight.
Meta’s vision is to bring personal superintelligence to everyone — so that people can direct it towards what they value in their own lives. We believe this has the potential to begin an exciting new era of individual empowerment.
A lot has been written about the economic and scientific advances that superintelligence can bring. I am extremely optimistic about this. But I think if history is a guide, then an even more important role will be how superintelligence empowers people to be more creative, develop culture and communities, connect with each other, and lead more fulfilling lives.
To build this future, we’ve established Meta Superintelligence Labs, which includes our foundations, product, and FAIR teams, as well as a new lab focused on developing the next generation of our models. We’re making good progress towards Llama 4.1 and 4.2 — and in parallel, we’re also working on our next generation of models that will push the frontier in the next year or so.
We’re building an elite, talent-dense team. Alexandr Wang is leading the overall team, Nat Friedman is leading our AI products and applied research, and Shengjia Zhao is Chief Scientist for the new effort. They’re all incredibly talented leaders and I’m excited to work closely with them and the world-class group of AI researchers, and infrastructure and data engineers we’re assembling.
I’ve spent a lot of time building this team this quarter, and the reason that so many people are excited to join is because Meta has all the ingredients required to build leading models and deliver them to billions of people. The people who are joining us will have access to unparalleled compute as we build out several multi-GW clusters. Our Prometheus cluster is coming online next year and we think it’ll be the world’s first 1GW+ cluster. We’re also building out Hyperion, which will be able to scale up to 5GW over several years. And we have multiple more titan clusters in development as well.
We’re making all these investments because we have conviction that superintelligence is going to improve every aspect of what we do.
From a business perspective, I mentioned last quarter that there are five basic opportunities that we are pursuing: improved advertising, more engaging experiences, business messaging, Meta AI, and AI devices. So I can go into a bit of detail on each:
On advertising, the strong performance this quarter is largely thanks to AI unlocking greater efficiency and gains across our ads system. This quarter, we expanded our new AI-powered recommendation model for ads to new surfaces and improved its performance by using more signals and a longer context. It’s driven roughly 5% more ad conversions on Instagram and 3% on Facebook.
We’re also seeing good progress with AI for ad creative — with a meaningful percent of our ad revenue now coming from campaigns using one of our GenAI features. This is going to be especially valuable for smaller advertisers with limited budgets, while agencies will continue the important work to help larger brands apply these tools strategically.
The second opportunity is more engaging experiences. AI is significantly improving our ability to show people content that they’re going to find interesting and useful. Advancements in our recommendation systems have improved quality so much that it has led to a 5% increase in time spent on Facebook and 6% on Instagram just this quarter.
There’s a lot of potential for content itself to get better too. We’re seeing early progress with the launch of our AI video editing tools across Meta AI and our new Edits app, and there’s a lot more to do here.
The third opportunity is business messaging. I’ve talked before about how I believe every business will soon have a business AI just like they have an email address, social media account, and website. We’re starting to see some product market fit in a number of countries where we’re testing these agents, and we’re integrating these business AIs into ads on Facebook and Instagram, as well as directly into e-commerce websites.
The fourth opportunity is Meta AI. Its reach is already quite impressive with more than a billion monthly actives. Our focus is deepening the experience and making Meta AI the leading personal AI. As we continue improving our models we see engagement grow, so our next generation of models is going to continue to really help here.
The fifth opportunity is AI devices. We continue to see strong momentum with our Ray-Ban Meta glasses, with sales accelerating. We’re also launching new performance AI glasses with the Oakley Meta HSTNs. They have longer battery life, higher resolution camera, and are designed for sports. The percent of people using Meta AI is growing and we’re seeing new users’ AI retention increase too, which is a good sign for that continued use. I think that AI glasses are going to be the main way that we integrate superintelligence into our day-to-day lives, so it’s important to have all these different styles that appeal to different people in different settings.
Finally, people continue to spend more time with our Quest ecosystem and the community continues to grow steadily. We launched the Meta Quest 3S Xbox Edition last month, and we’re seeing record interest in cloud gaming. And beyond gaming, we continue to see a broader set of use cases with media and web-browsing contributing a significant portion of engagement.
We’re going to have more to share on all of this, especially the Reality Labs work at Connect on September 17th, so I encourage you to tune into that.
Overall, it has been a busy quarter. Strong business performance and real momentum in assembling both the talent and the compute that we need to build personal superintelligence for everyone. I’m very grateful for our teams who are working hard to deliver this, and thanks to all of you for being on this journey with us.