Meta’s High-Stakes Dilemma: AI Ambitions Clash With Ad Scandal Fallout

Meta finds itself navigating turbulent waters as two contrasting narratives unfold simultaneously. The social media behemoth is channeling unprecedented resources into artificial intelligence development while confronting damaging allegations about its core advertising operations. This collision of future ambition and present-day controversy has left investors weighing substantial growth potential against significant reputational risk.

Just one day before announcing massive AI investments, Meta faced unwelcome scrutiny from a Reuters investigative report published November 6, 2025. The publication obtained internal company documents suggesting that approximately 10% of Meta’s 2024 advertising revenue—equivalent to $16 billion—may have originated from fraudulent advertisements and prohibited products.

According to the leaked materials, billions of what Meta internally categorizes as Read more...