Meta Platforms

Ring 1 Core AI revenue estimate for Q1 2024. Total revenue: $36,455M (FoA: $36,015M, RL: $440M). Ad impressions +20% YoY, avg price per ad +6% YoY. Meta does not break out AI revenue. Ring 1 AI products: (1) Advantage+ Shopping Campaigns -- launched late 2022, growing adoption among advertisers for fully AI-automated campaigns; (2) AI-driven Reels recommendations rebuilt on transformer models driving incremental Reels monetization; (3) Generative AI ad creative tools (text/image generation for ads, launched 2023). At this point Advantage+ had ~1M advertisers, Reels monetization was still ramping. The 20% impression growth was partly driven by AI recommendation improvements, but most of Meta's ad system predates recent AI advances (Ring 2). Conservative estimate: ~5% of total revenue ($1.82B) is attributable to Ring 1 AI -- primarily incremental Advantage+ revenue and AI-driven Reels monetization above baseline. The majority of the 27% YoY revenue growth reflects recovery from 2022 ad downturn and ongoing traditional ML improvements (Ring 2), not Ring 1 AI.