Meta owns and operates the world's largest social media platforms, including Facebook, Instagram, WhatsApp, Messenger, and Threads, which collectively serve over 3.5 billion daily active users. Meta makes nearly all of its revenue selling advertising across these platforms. Advertisers buy ads through a self-service auction platform, with a global sales force serving larger clients. Ad revenue is driven by two levers: engagement (time spent on apps generates more ad inventory) and monetization efficiency (AI-driven targeting that improves conversion rates, allowing advertisers to bid higher). Meta's AI-powered recommendation and ad ranking systems are central to both levers, and upgrades to these systems have driven measurable gains in conversion rates and ad pricing. Meta operates two segments: Family of Apps, which includes the advertising business and accounts for roughly 97% of revenue, and Reality Labs, which develops VR headsets (Meta Quest), AI-integrated smart glasses (Ray-Ban Meta, Oakley Meta), and AR hardware. Reality Labs runs at a persistent operating loss, funded entirely by Family of Apps profits. Beyond its core ad business, Meta is investing heavily in frontier AI through its Meta Superintelligence Labs, developing the open-source Llama model series and a consumer AI assistant, Meta AI, which has reached over 1B monthly active users. Meta's cost base is dominated by infrastructure and employee compensation, and the company is investing aggressively in AI infrastructure, with FY26 CapEx guided to $115–135B.