Nearly everyone seems to be suddenly freaking out about the rise of DeepSeek. Meta isn’t worried, though.
That was CEO Mark Zuckerberg’s message to investors during his company’s fourth-quarter earnings call on Wednesday. During the Q&A portion of the call with Wall Street analysts, Zuckerberg fielded multiple questions about DeepSeek’s impressive AI models and what the implications are for Meta’s AI strategy. He said that what DeepSeek was able to accomplish with relatively little money has “only strengthened our conviction that this is the right thing to be focused on.”
Zuckerberg noted that “there’s a number of novel things they did we’re still digesting” and that Meta plans to implement DeepSeek’s “advancements” into Llama. DeepSeek caused a massive sell-off in AI stocks due to fears that models will no longer need as much computing power. Zuckerberg tried to dispel concerns that the billions of dollars he’s spending on GPUs will go to waste: “I continue to think that investing very heavily in CapEx and infra is going to be a strategic advantage over time.”
His argument is in line with the growing consensus that computing resources will move from the training phase of AI development towards helping models better “reason.” In Zuckerberg’s own words, this “doesn’t mean you need less compute” because you can “apply more compute at inference time in order to generate a higher level of intelligence and a higher quality of service.” Meta is gearing up to release Llama 4 with multimodal and “agentic” capabilities in the coming months, according to Zuckerberg. He expects Meta’s AI assistant to reach one billion users this year.
He also took a thinly veiled jab at OpenAI, Anthropic, and other unprofitable startups by noting that Meta has a “strong business model” to support the roughly $60 billion it will spend on AI this year versus “others who don’t necessarily have business models to support it on a sustainable basis.”
Zuckerberg also made sure to praise President Donald Trump. “We now have a US administration that is proud of our leading companies, prioritizes American technology winning,” and “will defend our values and interests abroad,” he said. Moments before the earnings call started, news broke that Meta is paying Trump $25 million to settle a lawsuit he brought against the company for banning his account after the January 6th insurrection. (The vast majority of the money is going to pay for Trump’s presidential library.)
Meanwhile, Meta is a cash-printing machine. Revenue for the fourth quarter of 2024 was $48.39 billion — a 22-percent increase from the year-ago period — while net profit was a staggering $20.8 billion (up 43-percent from a year before). During the earnings call, CFO Susan Li said that Meta hasn’t “seen any noticeable impact” from its content policy changes on ad spending. 3.35 billion people used at least one of Meta’s apps daily in the fourth quarter — a 5-percent increase from the year-ago period.
