Meta Scans Every Public Instagram Post with AI, Profits Fall on AI Spending
Meta CEO Mark Zuckerberg revealed during a Q2 earnings call that Instagram has scanned every public post using an LLM AI model to improve recommendations. The AI analyzes topics and tone, and the process is rolling out to Facebook. Zuckerberg credited the technology with a 15-basis point increase in Instagram sessions and better content matching. However, Meta's share price fell 8% as profits dropped 14% to $6 billion despite 28% revenue growth to $61 billion. The profit decline is due to massive AI infrastructure spending, with Meta estimating $130–145 billion in 2026, up from a previous $125 billion. Investors worry about returns, drawing parallels to Meta's metaverse investments. Forrester Research analyst Mike Proulx noted that cash generated was consumed by AI spending, questioning whether AI initiatives represent diversification or distraction.
Key facts
- Meta scanned every public Instagram post with an LLM AI model.
- Zuckerberg announced this during a Q2 earnings call.
- The AI improves recommendations by analyzing topics and tone.
- The process is being rolled out to Facebook.
- Instagram sessions increased by 15 basis points.
- Meta's share price fell 8% after earnings.
- Profits fell 14% to $6 billion; revenue grew 28% to $61 billion.
- Meta plans to spend $130–145 billion on AI infrastructure in 2026.
Entities
Institutions
- Meta
- Forrester Research
- BBC
- PetaPixel
- Depositphotos