Meta’s AI and Energy Investments Seem To Be Paying Off

Up over 47% so far this year, Meta’s share price is on the upswing likely due to the company’s AI strategy. With a reach of nearly 3.2 billion users daily, Meta has extended access to Meta AI through Facebook, Instagram, WhatsApp, and Messenger. Currently, AI services are open to 22 countries and numerous languages.

Increased user interaction on various platforms has led to a 22% jump year-over-year in revenue, reaching just over $39 billion for Meta Platforms. AI seems to be the leading driver for monetizing its massive user base.

Since the introduction of Reels, Instagram users have spent 24% more time on the platform, with Meta AI recommending about 40% of the content. Meta AI has also helped advertisers improve their return on ad spend (ROAS). Ad impressions on the various social platforms have gone up by 20%. Meanwhile, the average price per ad has increased by 6%, reversing a previous downward spiral.

Realizing the considerable amount of power AI requires, Meta is on track to spend millions of dollars looking at ways to generate the necessary energy to keep the technology running without damaging the environment. Meta Platforms, alongside Sage Geosystems, is investing in a geothermal energy system with the capability to produce power virtually anywhere without emissions.

Using patented technology, Sage will send carbon-free power to data centers operated by Meta Platforms. Once the project is complete, the system is expected to generate roughly 150 MW of clean energy. If successful, the system will show the viability of using geothermal power on a larger scale, encouraging its use across the U.S.

“As energy demand continues to grow, the need for reliable, resilient and sustainable power is paramount, and our partnership with Meta underscores the critical need for innovative and sustainable energy solutions like ours,” noted Sage Geosystems CEO Cindy Taff, per The Register.

This project is not the only one for Meta. Being one of the major buyers of renewable energy, Meta Platforms has made agreements with other green energy contractors to receive more than 12,000 MW overall.