Meta has an AI product problem 

Meta is investing heavily in AI, spending billions on talent and infrastructure, including building two massive data centers and planning up to $600 billion in U.S. infrastructure spending over three years. This aggressive investment led to a $7 billion year-over-year increase in operating expenses and nearly $20 billion in capital expenses in the latest quarter. Despite these expenditures, Meta has yet to generate significant revenue from its AI efforts, causing investor concern and a sharp decline in its stock price—dropping 12% and wiping out over $200 billion in market value shortly after earnings were reported. During the earnings call, CEO Mark Zuckerberg emphasized that the spending was just beginning and framed it as necessary to develop frontier AI models with novel capabilities that could unlock massive future opportunities. However, he was unable to provide concrete revenue forecasts or product timelines, leaving analysts and investors uncertain about the near-term payoff. Unlike competitors such as Google, Nvidia, and OpenAI—who also invest heavily in AI but have fast-growing, revenue-gener