Revenue has increased. Have you seen Meta's latest earnings? +33% revenue - in this economy.
Affordability is not a question. There is a reason companies like Meta have no issue with their engineers spending $1k/day on tokens. It's just not that much compared to how much they make per employee.
>$8 billion of net income was the result of a tax benefit the company realized in the first quarter of the year.
So exactly how much of their revenue is because of any code LLMs wrote vs. just structural tail winds?
But if all of your peers are saying LLMs are more productive, if you're building things faster than ever before, the macro picture speaks for itself.
I agree that the macro picture would speak for itself. Can you point to any macro level detail that is indeed cleanly showing benefits from increased productivity from LLMs?
All I was saying here was that tax breaks wouldn't impact revenue since revenue is reported before taxes, operating costs and anything else.
I really don't understand their economics.
It's not like they used AI to crank out some new revenue generating piece of software, or massively reduce operating costs. In fact their operating costs rose by 35%.
Have you wondered why this is the case? How do you think they increased impressions so much at their scale? How they did this despite losing 20M users?
To put it clearly, AI at every part of the pipeline: writing software, product features/experiments, A/B testing them, and pushing them out to users. Even before you get to something like LLM driven recommendations, you can virtually entirely automate the process of finding more "engagement alpha" with AI.
Edit: Also, historically Meta has been growing revenue by 30 to 50 percent for the last decade. With the only exception being 2022 and 2023. So it's not like recent performance is an outlier.