Meta's Q2 Profit Falls 14% as Zuckerberg Lays Out Full-Stack AI Bet

According to the New York Times, Meta's second-quarter profit fell 14 percent as AI infrastructure costs climbed faster than revenue — but on the earnings call, CEO Mark Zuckerberg made clear he's not changing course. He outlined what he called a "large enterprise opportunity" that extends well beyond selling access to AI agents.

Zuckerberg described three specific components of that opportunity: APIs, compute resale, and Meta's own internal tooling repackaged as products. The framing positions Meta as an aspiring infrastructure provider — not just a model or consumer app company — competing for enterprise budgets that currently flow to cloud and AI infrastructure incumbents.

The stated ambition is to control the full AI stack, from Llama models through to data centers, with 2027 cited as the horizon for that strategy to pay off. Investors on the call weren't satisfied with the near-term margin squeeze, and the 14 percent profit drop gives them reason to keep pressing.

Zuckerberg's argument, stripped down, is that short-term margin pain is the price of owning the infrastructure layer before competitors do. Whether the 2027 timeline is a firm target or earnings-call optimism, the direction of spending isn't in question.

Read the full story at New York Times