Meta's Mark Zuckerberg overtakes founder of world's largest server maker to become fourth richest billionaire

Amazon (AMZN) blocked Meta's (META) Muse AI agent, citing security concerns and competition in the $19.81B ad business. Amazon reported $200.61B revenue, up 19.6% YoY, with AWS growing 36.7%. Meta's revenue hit $60.80B, up 27.96%, but missed EPS estimates and saw free cash flow drop to $784M. The conflict centers on control over shopper data and ad revenue.

Big Tech companies are facing challenges in securing reliable electricity for their expanding AI infrastructure, with demand projected to surge over 1,100% by 2033. Companies like Amazon, Meta, and Oracle are investing heavily in data centers and power infrastructure, while also committing to cover grid-upgrade costs. Oracle's Project Jupiter highlights financial risks due to power-delivery delays. Amazon and Meta are spending on backup generation and new power plants, respectively.

Meta settled lawsuits with 47 states, D.C., and territories for up to $17.1B, including $1B with Texas, and $1B with New Mexico. The settlement requires Meta to make product changes to limit addictive features on Instagram and Facebook. Meta's stock rose post-settlement. YouTube, owned by Google, faces similar lawsuits. States and federal lawmakers are proposing legislation to regulate social media companies.

Meta Platforms (META) faces a multistate investigation by 42 state attorneys general focusing on AI chatbots and agents. The coalition aims to enforce consumer protection and civil rights laws, extending scrutiny beyond federal oversight. Meta's AI systems, crucial for its social apps and VR devices, are under increased regulatory pressure, potentially impacting its AI spending and monetization strategies. The company's market value is approximately $1.9 trillion.

Meta unveiled Muse, an AI agent capable of handling tasks like booking flights and managing calendars. Available to U.S. adults, Muse aims to become a personal superintelligence, according to Zuckerberg. Meta is investing $137 billion in AI this year, with Muse's success hinging on user trust and data access. Early downloads exceeded 900,000, and Meta's share price rose 11%. Muse's functionality may face resistance from retailers like Amazon, which blocks such agents.

Piper Sandler raised its price target for Meta (META) to $875 from $785, citing AI optimism and product innovations. The stock is near its 52-week high. Other analysts also increased targets, while some see it as overvalued. Meta announced VR glasses and partnerships for its Muse AI platform.