Meta platforms (THE TARGET) reported third-quarter earnings that beat analysts’ estimates with a boost from artificial intelligence (AI) demand and raised its estimates for how much money it plans to spend this year as it invests in emerging technology.

The parent of Facebook and Instagram reported $40.59 billion incomeup from $34.15 billion in the same period last year and over $40.27 billion analysts had expectedaccording to estimates made by Visible Alpha. The meta posted $15.69 billion in net incomeup from $11.58 billion and better than the $13.58 billion projected by analysts.

Meta raises the bottom line of its spending forecast as it invests in AI

Advertising revenue, the biggest part of Meta’s revenue, rose 18.6% to $39.89 billion, slightly above estimates of $39.56 billion, benefiting from the tech giant’s advances with artificial intelligence (AI).

“We had a good quarter driven by the advancement of AI in our apps and business,” CEO Mark Zuckerberg said in a statement, adding that the company also saw “strong momentum with Meta AI, Llama adoption and Glasses powered by AI”.

The results come as several big tech companies, including Meta, face intense pressure to show billions of dollars they spend on AI will enhance the results. The company raised the lower end of its full-year outlook capital expenditure to $38 billion to $40 billion, from $37 billion to $40 billion previously, as Meta invests in AI.

Meta said it expects fourth-quarter revenue of between $45 billion and $48 billion, with analysts expecting about $46.34 billion.

Meta shares were down 0.8% in extended trading after the release. They were up 67% for 2024 by Wednesday’s close.