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Meta AI: Expansion, Acquisitions, and Profits

By: Phoebe Bulotano
February 11, 2025

Meta Platforms (NASDAQ: META) is making big moves in artificial intelligence (AI) in 2025. The company is expanding through acquisitions and achieving record-breaking profits. In Q4 2024, Meta reported a 21% revenue increase, bringing its net income to $20.8 billion. Accordingly, these results show how AI-driven advertising and infrastructure are boosting Meta’s profits.

At the same time, Meta is actively pursuing acquisitions to strengthen its AI capabilities. The company is reportedly negotiating to acquire FuriosaAI, a South Korean AI chipmaker. This deal would help Meta reduce reliance on Nvidia and AMD, giving it more control over its AI hardware. These expansion efforts confirm Meta’s AI-first vision as it works to lead in AI-powered platforms.

Meta Moves to Acquire FuriosaAI for AI Hardware Development

Meta is in advanced talks to acquire FuriosaAI, a South Korean AI chip company. This company specializes in high-performance computing for machine learning models. If this deal is finalized, Meta will take a major step in developing its own AI hardware.

By investing in custom AI chips, Meta aims to boost AI processing power across its platforms. This includes Facebook, Instagram, and the Meta AI assistant. Lastly, this move follows strategies by Google (TPU chips) and Amazon (Trainium & Inferentia chips), both of which developed in-house AI solutions.

If successful, the acquisition could help Meta cut operational costs and improve AI performance. It would also give Meta an advantage in AI-driven advertising and virtual assistant technologies. However, FuriosaAI must still prove its technology can compete with major AI chipmakers like Nvidia.

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Meta’s AI-Powered Ads Push Profits to Record Highs

Meta’s Q4 2024 earnings report highlights how AI-driven ads are driving financial success. The company posted $20.8 billion in net income, a 21% increase in revenue year-over-year. Moreover, this growth shows the impact of AI-powered ad optimization, which improves engagement and advertiser spending across Meta’s platforms.

The key reasons behind this financial growth include:

AI models that improve ad targeting and engagement.
Higher monetization through AI-driven ad personalization on Facebook, Instagram, and Threads.
Better AI-powered ad delivery, increasing advertiser returns on investment.

As Meta improves its AI-driven ad system, investors will watch whether this momentum continues. Further, the company’s AI-powered ads are now its most profitable business area. To maintain this growth, Meta is expected to increase its AI investments.

Meta’s AI Expansion Goes Beyond Advertising

Meta’s AI growth strategy is expanding beyond advertising. The company is now working on AI infrastructure and automation tools. Evidently, the FuriosaAI acquisition, combined with heavy investments in AI research, signals that AI will be Meta’s core business model moving forward.

Unlike past projects, such as the metaverse, Meta’s AI investments are delivering immediate financial benefits. These include higher ad efficiency and improved user engagement. As AI becomes a bigger part of Meta’s business, the company will likely pursue more acquisitions. This could further strengthen its position in AI-powered services.