During a Q2 earnings call this week, Meta CEO Mark Zuckerberg revealed that Instagram has improved its algorithm by scanning every public post and using that information to provide better recommended content. Zuckerberg says that the LLM AI model that scans public Reels and posts allows Meta to better analyze them for topics and tone, which he says is “a key building block toward greater personalization.” But despite Zuckerberg’s upbeat messaging on how Meta is deploying AI internally, Wall Street was down on the company as its share price slid by 8%. “What it generated in cash this quarter almost all got eaten by AI infrastructure spending,” says Mike Proulx, who works at Forrester Research. “Investors now have to decide whether Meta’s growing list of AI initiatives represents company diversification or distraction.”