Meta Launches Hatch AI Agent Amid Ad Revenue Surge

Meta Platforms is utilizing artificial intelligence to expand its advertising business and establish new revenue streams. The company reported a 27 percent year-over-year increase in advertising revenue for the second quarter, a growth attributed to AI-driven performance improvements that allowed Meta to gain two percentage points of market share.

To further monetize these technologies, the company is developing Hatch, a consumer-focused AI agent designed for integration with Instagram and WhatsApp. Premium usage of the Hatch agent may include a subscription tier priced as high as $199.99 per month. These initiatives occur as the company raises its low-end full-year capital expenditure guidance to $130 billion to fund its AI infrastructure.

Beyond product development, the company recently agreed to pay up to $18 billion to settle claims with U.S. attorneys general concerning youth social media addiction. Despite these legal costs and high spending, research from Maestro indicates the company is on track to surpass Google Search as the largest advertising platform globally.