Meta Core Business Rebound: Muse AI Project’s Unsettled Financials Remain a Looming Risk Amid Cost Cuts

Bitcoin fell 2.4% to $81,397 on October 22, 2026, after Meta's earnings report raised concerns about AI spending. Meta's revenue beat expectations, but negative free cash flow due to AI investments led to a 7% stock drop. Bitcoin and DeFi tokens declined as investors cut risk, with DeFi tokens falling harder due to smaller market size and weaker trends. Monero rose 4.9% amid privacy coin focus. Upcoming events like the Fed meeting and tech earnings could impact crypto markets.

Rhode Island sued Meta (META) in state court, alleging the company profits from scam ads on Facebook, Instagram, and WhatsApp. The lawsuit seeks penalties, restitution, and a court order to address scam ads. Meta denies the claims, citing its anti-scam efforts. According to internal documents, Meta earns 10% of 2024 revenue from fraudulent ads, displaying 15 billion high-risk scam ads daily. The case follows similar legal actions against Meta.

Google and Meta open-sourced TorchTPU, enabling PyTorch to run on Google's TPUs. Tests show TPUs are cost-effective for batch tasks but slower in latency-sensitive applications. Meta uses TorchTPU in production and has invested in both Google TPUs and Nvidia GPUs. Nvidia still leads in latency and FP4 support.

Meta CEO Mark Zuckerberg outlined the company's long-term AI strategy, focusing on personal superintelligence, proprietary AI models, and smart glasses. He described these as key bets for Meta's growth, emphasizing the company's vision to empower individuals with advanced AI. Meta reported Q3 revenue of $64.6 billion, exceeding estimates, and raised its 2026 expense forecast.

Meta's shares dropped 7% on Oct. 22 despite strong Q3 earnings and revenue guidance exceeding forecasts. Revenue rose 26% YoY to $64.6B, but capital spending reached $34.91B, resulting in negative free cash flow of $2.12B. Management raised annual CAPEX forecast to $130B-$145B, raising concerns about financial pressure from AI investments.

Meta Platforms Inc. agreed to an 8-year deal to keep CEO Mark Zuckerberg in California, addressing potential relocation due to a proposed billionaire tax. Zuckerberg will receive non-voting Class C shares, which he can sell to cover tax obligations. Meta's board emphasized his continued leadership is crucial. The company also announced a stock recapitalization plan to raise capital and finance AI-related spending. Meta reported Q3 revenue of $64.6 billion, exceeding estimates.