Meta’s AI spending comes into focus amid Trump’s tariff policies
Summary
Intel Chief Financial Officer David Zinsner said Thursday during the chip giants first-quarter earnings call that U.S. trade policies "have increased the chance of an economic slowdown, with the probability of a recession growing." Meanwhile, Google CFO Anat Ashkenazi said that day during a first-quarter earnings call that the tech giant remains committed to its $75 billion investment in capital expenditures, or capex, this year, but also acknowledged that the "timing of deliveries and construction schedules" could cause some quarter-to-quarter spending fluctuation. For now, analysts expect Meta to follow Alphabets lead and remain firm in its plan to spend as much as $65 billion in capex for AI infrastructure this year when it reports earnings Wednesday. Its critical that Meta keep improving Llama to create a major business involving AI agents that companies can use to interact with their customers within apps like Facebook and WhatsApp, William Blair research analyst Ralph Schackart said. Meta is unlikely to curb its Llama investment any time soon, but should eventually consider doing so if it fails to generates enough money to justify its costs, said Ken Gawrelski, a Wells Fargo managing director of equity research.