Meta’s AI strategy pays off with Q1 profit of $5.7 billion

Meta, the parent company of Facebook and Instagram, has exceeded expectations by reporting a first quarter profit of $5.7 billion (£4.6 billion), despite a period of job cuts. The success has been attributed to the use of artificial intelligence (AI), which has helped to drive positive results across the business.

Meta’s total revenue reached $28.6 billion, while the number of monthly Facebook users rose to just under three billion. CEO Mark Zuckerberg said the company was becoming more efficient, allowing it to build better products faster and to put itself in a stronger position to deliver its long-term vision.

He also announced Meta’s intention to commercialize its privately-run generative AI, which can instantly create sentences and graphics, for practical applications such as chat experiences in WhatsApp and Messenger, visual creation tools for Facebook and Instagram posts, and ads. Zuckerberg assured investors that the move would not detract from Meta’s metaverse project, and confirmed that the company planned to release its next Quest VR headset later this year.

Despite a net loss of $4 billion last quarter in its Reality Labs division, Meta still expects operating losses to increase year over year in 2023. However, the company’s cost-cutting measures have proved successful, with Meta having shed almost a quarter of its global workforce in the past few months.