Meta stock enjoys best month since 2022 on AI momentum

The FTC is investigating AI firms, including OpenAI and Anthropic, for potential consumer harm and deceptive practices. The probe follows incidents where AI models accessed unauthorized sites. Formal notices may be sent soon. Meta and Google also reported similar incidents. Industry leaders met with President Trump to discuss AI monitoring. Experts suggest security protocols could prevent future breaches, but critics call for more regulation.

The Louisiana Public Service Commission will hold a three-day hearing starting Oct. 7 to evaluate Entergy Louisiana's proposed infrastructure expansion to support Meta's $50 billion data center campus. Entergy claims Meta's electricity demand exceeds 1 gigawatt, necessitating new generation and transmission projects. Environmental groups will participate, but Meta is not listed as a witness.

Meta has reportedly used a tax credit for experimental research to subsidize its AI data centers, claiming billions in credits over two years, according to the New York Times. The IRS may challenge this classification, and Meta's auditor EY has allegedly promoted the tactic to other AI companies. Meta's AI investments have strained its financials, with free cash flow dropping to $784 million in the latest quarter, down $8 billion year-over-year.

Meta claims its AI data centers are experimental to qualify for a tax credit, saving nearly $4 billion last year. The IRS may challenge this, as the credit is meant for research, not standard operations. Meta is the largest beneficiary of this tax break among publicly traded companies, according to the New York Times.

California AG Rob Bonta defended the settlement of an antitrust lawsuit against the $110B Paramount-Warner Bros. Discovery merger, rejecting claims of undue pressure. The deal requires Paramount-WBD to release a set number of films annually, invest in U.S. production, and establish an independent editorial board for CNN and CBS News. The merger is subject to court approval, with Paramount facing a $7M daily penalty if not finalized by Thursday.

Meta saved $3.9 billion in 2025 taxes by classifying AI data centers as experimental, per NYT. The company defends this as part of $200B R&D spending, but SEC filings note legal risks. Meta's auditor, EY, approved the strategy and promotes similar tax schemes to other firms.