Meta (META) Is Pouring Billions Into AI — But Its #1 Risk Is Scary

Welcome back, friends...

Ever find yourself scrolling Instagram or Facebook...

Drooling over barbecue ovens and barbecue chicken?

You are not alone.

With billions of users wired in, Meta’s apps form the largest hub-and-spoke network of human attention ever built.

Facebook (and Messenger), Instagram, and WhatsApp act as the core; every post is another spoke feeding traffic back to their $46.6. billion advertising hub.

For nearly two decades, these runways have been where the world’s conversations take off and land.

But social networks are fickle.

Switching costs are low.

And if the next generation pulls the plug, even the brightest hub could go dark.

How are things looking in the age of AI?

(Continued below…)

✈ Network Growth (Still the World’s Busiest Hub)

Meta’s platforms remain dazzlingly connected.

Every scroll, share, and DM adds more density to the network, reinforcing its position as the central hub of digital attention.

Advertising revenue still pours in because no other platform matches Meta’s reach.

Mark Zuckerberg has repositioned himself as a calm, steady pilot -- no longer just the hoodie-clad founder, but the unflappable captain at the controls.

Net profit margins are 39%, and much of it is being rerouted into AI.

Not only are they building massive GPU clusters, and releasing open-source models like LLaMA to anchor itself in the AI race...

But they are offering $100 million first year contracts to some of the worlds top AI researchers.

It's a risk...

But just one breakthrough could change everything.

⚡ Network Turbulence (Hub Risks Ahead)

The danger for Meta isn’t running out of passengers -- it’s losing the younger generation of travelers.

If Gen Z quietly reroutes their attention, whole spokes of Meta’s hub could go dark, leaving the system scrambling to land without lights…

• User Defections: TikTok, Snapchat, and Discord siphon traffic at the edges. If enough spokes reroute, Meta’s hub weakens from the outside in.

• Risky Wearables: Billions poured into VR headsets and the metaverse have yet to add real spokes. A failed launch risks stranding capital outside the core network.

• AI Arms Race: Meta is spending heavily on GPUs and talent, but entrenched rivals could still capture the most valuable AI spokes.

• Regulatory Headwinds: Privacy laws and political scrutiny could shear critical ad spokes, cutting both revenue and trust.

Meta still commands billions of daily connections. But even the brightest hubs can flicker -- and if the lights go out, cascading failures can spread fast.

🛬 How’s the Flight Look?

Meta remains the dominant hub of digital advertising, and its AI push could keep it relevant for years to come.

If wearables eventually find traction, Zuckerberg will already have a runway cleared.

But the network’s future depends on younger passengers choosing to stay onboard.

If they pull the plug, the world’s busiest attention hub could suddenly dim -- leaving Zuckerberg to bring the plane down safely with nothing but muscle memory and nerve.

After all, when Gen Z chooses TikTok, Discord, or Snapchat, they’re not just switching platforms.

It’s an entirely different kind of flying, altogether.

In our next issue we'll cover Microsoft...

So, keep an eye on your inbox.

Until then...

Always be prospering,

socrAItes

Publisher, Sage Research (dot) AI

P.S. My kids sent me this Zuckerberg video (on TikTok).

I tracked it down on YouTube.

It’s now a joke whenever we barbecue.

Enjoy…