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Rani Molla

Meta joins Tesla as an AI robot company

As goes Elon Musk’s Tesla, so goes Mark Zuckerberg’s Meta.

Now, Meta is following Tesla into AI-powered humanoid robots, Bloomberg reports.

Last month, Musk predicted that in the long term, its AI-powered Optimus robots — which in demos have so far been powered by humans — “will be overwhelmingly the value” of Tesla.

Now Meta plans to develop its own robots with the help of outside robotics companies. Initially these humanoid robots will help with household chores, but Meta’s “bigger ambition is to make the underlying AI, sensors and software for robots that will be manufactured and sold by a range of companies,” Bloomberg reported.

Meta will have to hurry. Musk said his company intends to build 10,000 of its Optimus robots this year, but he hedged during the latest earnings call.

“Will we succeed in building 10,000 exactly by the end of December this year? Probably not, but will we succeed in making several thousand? Yes, I think we will,” Musk said.

Meta’s robot project will be part of its Reality Labs hardware division — the one that lost nearly $18 billion last year.

Presumably, unlike earlier versions of Metaverse avatars, Meta’s robots will have legs, but we don’t know for sure.

Now Meta plans to develop its own robots with the help of outside robotics companies. Initially these humanoid robots will help with household chores, but Meta’s “bigger ambition is to make the underlying AI, sensors and software for robots that will be manufactured and sold by a range of companies,” Bloomberg reported.

Meta will have to hurry. Musk said his company intends to build 10,000 of its Optimus robots this year, but he hedged during the latest earnings call.

“Will we succeed in building 10,000 exactly by the end of December this year? Probably not, but will we succeed in making several thousand? Yes, I think we will,” Musk said.

Meta’s robot project will be part of its Reality Labs hardware division — the one that lost nearly $18 billion last year.

Presumably, unlike earlier versions of Metaverse avatars, Meta’s robots will have legs, but we don’t know for sure.

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Report: SpaceX’s satellite internet business is propping up its rocket and AI businesses

Ahead of SpaceX’s highly anticipated IPO in June, new reporting from The Information reveals just how dependent the rocket and AI company is on its internet business.

According to the report, in 2025, Starlink generated $11.4 billion in revenue and $7.2 billion in adjusted EBITDA — a striking 63% margin — making it SpaceX’s only meaningful source of profit.

By contrast, the company’s core rocket launch business and its recently acquired AI unit, xAI, lagged far behind financially. The space launch business generated $4.1 billion in revenue and about $700 million in adjusted EBITDA, while the AI segment brought in $3.2 billion in revenue but lost roughly $1.2 billion on an EBITDA basis.

In other words, Starlink accounted for most of SpaceX’s revenue — and more than all of its adjusted profit.

Starlink’s profitability is already attracting rivals. Amazon on Tuesday agreed to acquire satellite company Globalstar in an effort to more directly compete with Starlink.

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Meta will surpass Google in ad revenue this year, new industry data shows

In a world supported by digital ad dollars, Meta may soon be king. The Instagram owner’s net digital ad revenues are expected to hit $243.5 billion in 2026, surpassing Google’s projected $239.5 billion, according to new data from eMarketer.

The shift is happening as Big Tech companies, including Meta and Google, are increasing their spending on AI in hopes that AI will grow their top and bottom lines.

On the company’s last earnings call, Meta CFO Susan Li credited AI with driving performance gains, and said that growth will continue: “We expect the set of investments we’re making in 2026 will enable us to drive further gains as we continue to integrate AI across all layers of the marketing and customer engagement funnel.”

“In surpassing Google, Meta has essentially had many of its core strategies validated,” said Max Willens, principal analyst at eMarketer. “Meta has long understood that scale, network effects, and habits are more important than anything else in digital media. It has carefully built and defended the advantages it has in all three areas.”

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What does delicious Asian food seasoning have to do with a potential bottleneck for AI chips?

Japanese food flavoring company Ajinomoto, which commercialized MSG, also makes a key component in AI chips. It’s having trouble scaling to meet demand.

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