Meta unveils AI models as Apple Microsoft drive earnings

Key Takeaways

• Meta plans to launch new AI models and products in 2026, focusing on personalized app experiences, AI-driven commerce, and agentic shopping tools, with capital expenditures projected to reach $115 billion to $135 billion.
• Pinterest is cutting less than 15% of its workforce and reducing office space to reallocate resources to AI-focused teams and products, including its AI-powered board updates and Pinterest Assistant.
• The 'Magnificent Seven' stocks (Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, Tesla) are expected to continue strong AI-driven earnings growth.
• The primary limitation for US AI growth is an electricity shortage and inadequate power grid infrastructure, rather than chip availability.
• Rio Tinto and Amazon Web Services (AWS) partnered to supply low-carbon copper for AWS's AI data centers, using Rio Tinto's Nuton bioleaching technology.
• The United States and China are considered the only two 'sovereign' nations in AI, dominating the global AI landscape.
• Chinese tech giants ByteDance and Alibaba Group are set to release new flagship AI models around mid-February, intensifying the AI race in China.
• Akido Lab's ScopeAI technology will be used by the Future Communities Institute in the San Francisco Bay Area to improve medical care for the homeless, aiming to reduce treatment wait times from days to hours.
• Duke University School of Medicine launched Discovery AI to accelerate the use of AI and machine learning in biomedical discovery, focusing on reprogramming diseased cells and creating new treatments.
• An expert warns that project cost blowouts are the biggest risk in AI investing, noting rising costs in large AI deals.

Mark Zuckerberg plans deeper AI presence in Meta apps

Meta CEO Mark Zuckerberg announced plans for new AI models and products in 2026. The company aims to make its apps, like Instagram, more personalized using AI. This includes an LLM-enhanced system for tailored content and ads, and AI-translated videos. Zuckerberg envisions an immersive and interactive digital experience, comparing AI smart glasses to smartphones. Meta expects potential financial loss due to scrutiny on youth-related issues.

Zuckerberg previews AI commerce tools and 2026 rollout

Mark Zuckerberg announced that Meta will release new AI models and products in 2026. He highlighted AI-driven commerce, including agentic shopping tools, as a key focus. Meta believes its access to personal data will create uniquely valuable and personal AI experiences. The company increased investment for its Meta Superintelligence Labs and core business. Zuckerberg stated 2026 will be a big year for delivering personal superintelligence and accelerating business.

Meta to launch more AI products for consumers in 2026

Meta plans to expand its consumer-facing AI products in 2026, as announced by Mark Zuckerberg. This includes agentic shopping tools to help users find products from businesses on Meta's platforms. Meta acquired Manus, an autonomous AI agent technology, to boost conversational platforms and social commerce. The company will invest between $115 billion and $135 billion in capital expenditures in 2026, a rise from $72 billion in 2025. Zuckerberg stated Meta aims to deliver personal superintelligence and enhance media engagement across its apps.

Pinterest cuts jobs to focus on AI products

Pinterest is cutting less than 15% of its workforce as part of a strategy shift. The company will reallocate resources to AI-focused teams and reshape its sales approach. This restructuring also includes reducing office space and is expected to cost $35 million to $45 million in pre-tax charges. Pinterest plans to complete these changes by the end of September. Recent AI launches include AI-powered board updates and the Pinterest Assistant shopping tool.

Pinterest lays off 15 percent to boost AI focus

Pinterest plans to lay off 15% of its staff as part of a global restructuring. The company will also reduce its office space to reallocate resources to AI-focused teams and products. This move is expected to cost Pinterest between $35 million and $45 million and should finish by September 30. Pinterest aims to prioritize AI-driven products and capabilities, like its AI-powered board updates and Pinterest Assistant shopping tool. The company has been integrating AI to make its platform more intuitive for shoppers.

Magnificent Seven stocks to continue strong AI earnings

Despite market changes, the AI euphoria continues, and the Magnificent Seven stocks are expected to show strong earnings growth. These companies include Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms, and Tesla. Investors are now closely examining each company's financial health and growth plans individually. Other sectors like industrials, financials, and real estate are also seen as attractive. Emerging markets such as India and Brazil are gaining attention due to eased trade concerns.

US AI growth faces electricity shortage not chip limits

The United States leads in AI development, but its growth is limited by a lack of electricity and power grid infrastructure. AI data centers need huge amounts of reliable power, which the current U.S. grid struggles to provide. Upgrading transmission networks is slow due to complex permitting and local opposition. Integrating renewable energy also brings challenges for grid stability and capacity. Solving this requires government action, private investment, and new technology to streamline permits and modernize the grid.

AI boosts medical care for homeless in San Francisco Bay

The Future Communities Institute and partners in the San Francisco Bay Area will use AI to improve medical care for the homeless. Akido Lab's AI technology, called ScopeAI, will help street medical teams gather patient information and provide faster treatment. This AI system uses ambient listening and data analysis, with doctors reviewing recommendations, to increase speed to treatment and improve outcomes. The Bay Area's homeless population has grown significantly, and they often rely on emergency services. This program aims to address acute health issues like diabetes and substance use, potentially reducing treatment wait times from days to hours.

Expert warns AI investing faces project cost blowouts

Marc Ostwald from ADM ISI warns that the biggest risk in AI investing is project cost blowouts. He notes that costs are rising in large AI deals. Ostwald also discussed the ongoing trend of the US dollar losing value. Additionally, he mentioned a continued pattern of yen repatriation.

Rio Tinto and Amazon partner for low-carbon copper

Rio Tinto and Amazon Web Services AWS have partnered to supply low-carbon copper for AI data centers. AWS will be the first customer for copper produced using Rio Tinto's new Nuton technology. Nuton is a bioleaching process that recovers copper from already mined material, helping AWS meet its carbon emission goals. The two-year agreement also involves Rio Tinto using the AWS platform to model and optimize the bioleaching process. This collaboration could revolutionize mining and ensure enough copper for the growing AI industry.

US and China dominate new AI world order

The United States and China are the only two countries considered sovereign in artificial intelligence. These nations alone can produce and control advanced AI systems. This creates a new bipolar world where other countries depend on the US and China for AI technology. This division will lead to a geopolitical landscape shaped by AI competition and cooperation between the two superpowers. The rest of the world will likely align with one of these powers, forming a new global order.

ByteDance and Alibaba launch new AI models in China

Chinese tech giants ByteDance and Alibaba Group plan to release their new flagship AI models around the Lunar New Year holiday in mid-February. This move intensifies the race for AI dominance in China. Both companies are investing heavily to develop AI capabilities that can compete with U.S. leaders like OpenAI and Google. The new models are expected to show major improvements in large language models, which power generative AI tools like ChatGPT. Their success will help decide which companies lead China's AI revolution.

Duke University boosts AI research for biomedicine

Duke University School of Medicine launched Discovery AI, a new research initiative. This program aims to speed up the use of AI and machine learning in biomedical discovery science. It will recruit faculty with expertise in both AI and biology and provide shared computing resources and advanced lab technologies. Co-led by Scott Soderling and David Page, the initiative seeks to reprogram diseased cells and create new molecules and treatments using generative AI. Duke has already recruited experts like Rohit Singh and Christian Dallago, who specialize in protein language models and design.

Sources

• 'AI That Understands You': Mark Zuckerberg Plans to Deepen AI's Presence in Our Online Lives
• Zuckerberg teases agentic commerce tools and major AI rollout in 2026
• MediaDailyNews: Meta To Expand Consumer-Facing AI Products In 2026
• Job cuts signal Pinterest's deeper shift toward AI-powered products
• Pinterest to lay off 15% amid AI investment
• The AI euphoria isn’t over as the Mag 7 stocks will continue to post earnings growth
• AI Is Reshaping National Power, but America's Real Bottleneck Is Not Chips -- It Is Electricity
• AI helps expand medical response capacity for treating Bay Area's homeless
• Biggest risk in AI investing? 'Project cost blowouts', says strategist
• Rio Tinto Teams Up With Amazon: Fueling the AI Boom With Low-Carbon Copper for Data Centers
• Opinion | The New Bipolar World of AI
• ByteDance, Alibaba to Launch New Models in Race for AI Supremacy in China
• Discovery AI Ramps Up at Duke