In the end, most users may be willing to make some concessions for privacy if it means convenience and utility, Moorhead says. “If the consumer sees the trade as beneficial, they will continue,” he says. “That’s why Facebook and Instagram still have billions of users.”
On the financial front, the social media advertising business—its cash cow—routinely brings in significant revenue. Meta reported $60.8 billion in revenue and $15.9 billion in profit for the second quarter of this year.
Consistent wins have helped fuel bets from the much-mocked Metaverse, to its current mass expansion of AI infrastructure.
And on Muse? “It’s a very real time-saving benefit that many people want and love,” says Winick.
AI investment is not cheap. Meta has now taken on $83.7 billion in long-term debt, according to its latest financial report.
However, Meta executives are bullish about the company’s pivot to AI. “It’s really about your agent who can work on your behalf, who is your constant ally in everything you try to achieve in your goals in your life,” said Andrew Bosworth, the company’s Chief Technology Officer, in an interview with the BBC.
Meta has big plans. But its future may ultimately depend on whether its users can trust it.
Top image credit: CTMG, Inc./Leah Gallo