Meta loses 20 million users as AI spending surges to £145 billion

Meta revealed a loss of 20 million users across its apps during a Q1 earnings call, though it still recorded 3.5 billion daily visitors. CFO Susan Li attributed the decline to internet disruptions in Iran and restricted WhatsApp access in Russia. Despite net income of $26.8 billion and revenue of $56.3 billion—a 33% year-on-year increase—Meta's stock fell 9%. Investors are more concerned about the company's massive AI investment, now expected to reach between £125 billion and £145 billion, a $10 billion increase. Li admitted Meta has consistently underestimated its compute needs. To fund AI infrastructure, Meta plans to cut 10% of its workforce (about 8,000 jobs) this month. Analyst Matt Britzman of Hargreaves Lansdown noted growing investor skepticism about AI returns. Meanwhile, Meta faces regulatory fines globally: EU regulators charged Meta for failing to prevent under-13 access; in March, a New Mexico jury ordered Meta to pay $375 million for failing to protect children from exploitation, and a Los Angeles jury awarded $6 million in a landmark addiction case against Meta and Google.