AI shifts the advertising outlook for Meta and Google

AI · First reported 1 Nov, 02:32 · Updated 02:58

Image: Wikimedia Commons · NASA Johnson Space Center · Public domain

Meta’s advertising revenue grew faster than Google Search’s in the reported quarter, while AI tools are emerging as both a way to improve advertising and a possible alternative to traditional search. Both companies are investing heavily in AI, amid questions about whether those investments will generate enough revenue.

Meta’s ad revenue rose 26% year over year to $63.1 billion, compared with 12% growth for Google Search, which generated $63.4 billion.
The article reports that Meta uses AI in advertising tools, while Google is deploying its Gemini models across its ad infrastructure; it also says chatbots and Google’s AI search features could reduce reliance on traditional search links.
The companies forecast substantial capital spending on AI: Google projected up to $205 billion and Meta up to $145 billion for the year, according to the article.

Summary written by Lux AI from 2 articles

Key facts

Meta ad revenue: $63.1 billion, up 26% year over year in the reported quarter.
Google Search revenue: $63.4 billion, up 12% year over year in the reported quarter.
Projected Google capital spending: Up to $205 billion for the year.
Projected Meta capital spending: Up to $145 billion for the year.
Google Cloud revenue: $31 billion in quarterly revenue, with growth of more than 100%, according to the article.