Nvidia CEO Jensen Huang says one company is ahead of the pack when it comes to extracting value from AI that translates to real-world earnings.
In a new CNBC interview, Huang says Meta’s shift from traditional recommendation systems to generative, agent-based AI has fundamentally changed how its platforms operate and monetize.
He explains that Meta’s AI evolution goes far beyond incremental upgrades, marking a structural change in how content, ads and recommendations are created and delivered.
“Nobody uses AI better than Meta. And so if you look at the way that they’re using AI, AI went from a classical recommender system running on CPUs to now a generative AI agentic system that is making recommendations. Everything from the way social media works and the way they recommend ads and help advertisers create content has fundamentally changed.
And their earnings show it. And that’s the reason why they’re investing so hard. They see just a much larger future potential for it.”
Market strategist Shay Boloor echoes Huang’s view, noting that Meta is a clear winner in AI application. According to Boloor, AI is enabling Meta to monetize by making the ads perform better as the firm’s ad impressions and pricing are on the up and up, which he notes is a rare combo.
Last month, tech analyst Beth Kindig called Meta a “shocking contender” in the AI race. According to Kindig, Meta has a $60 billion run rate in AI revenue, second only to Nvidia’s. She said Meta should “really double down on AI.”
Meta reported that in Q4 of 2025, it printed revenue of $59.9 billion, $58.1 billion of which came from ads. The company also allocated $135 billion to capital expenditure this year to power its Superintelligence push.
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