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PepsiCo is using AI to rethink how factories are designed and updated

Plus: Guys, I don’t think Tim Cook knows how to monetize AI

Author

Hafizur Rahman
January 30, 2026

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PepsiCo is using AI-driven digital twin technology to model and simulate its factories. This lets engineers test changes in a digital space before applying them in the real world.

Key Points :

  • Digital twins are detailed virtual models of physical systems, like a factory. With AI, these twins mimic equipment placement, material flows, and production speeds. They can test thousands of scenarios that would be costly or risky to try physically.

  • PepsiCo has started pilot projects. These show quicker planning cycles and early signs of improved throughput.

  • The goal isn’t automation for its own sake. It’s about reducing cycle time, lowering risks, and enhancing decision-making.

  • 🤖 How This Fits Into PepsiCo’s AI Strategy PepsiCo is changing how it uses AI. Instead of broad tools for general tasks, the company focuses AI on its core operations.

  • This focus is on areas where mistakes are costly and planning is complex.

  • PepsiCo views AI as operations engineering, not just an office tool. It aims for measurable outcomes, like saved time and fewer disruptions.

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Meta Has Been Spending Like Crazy on AI. It’s Actually Paying Off.

Meta is spending a lot on AI, and it’s growing fast. It jumped from about £39 billion in 2024 to around £72 billion in 2025. By 2026, it could reach £135 billion. This covers data centres, GPUs, infrastructure, and other AI needs.

Key points :

  • Investors are backing the strategy. After a strong fourth-quarter earnings report, Meta’s stock climbed roughly 10%. This shows Wall Street views its AI-driven growth positively.

  • AI is already aiding the advertising business. AI upgrades, like improved ad targeting and automation, have increased engagement on Meta's apps: Facebook, Instagram, and WhatsApp. These changes led to more ad clicks and higher conversion rates, boosting revenue.

  • Ads Still Rule Revenue. Nearly all of Meta’s revenue—about 97%—comes from ads.

  • AI is now key to optimising and monetising ads. This makes them more effective for marketers.

  • The “AI Payoff” Narrative Is Strengthening.

  • Earlier, high AI spending worried investors. Recent earnings show that revenue growth is increasing due to AI investment.

  • This suggests that spending is finally producing real business results.

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Guys, I don’t think Tim Cook knows how to monetize AI

Apple’s Earnings Upbeat, But AI Monetization Questioned

Apple reported $143.8 billion in revenue for the quarter, a strong result. During the earnings call, analysts asked CEO Tim Cook how Apple will profit from its AI efforts.

Key Points :

  • Analyst Asked the Hard Question

  • A Morgan Stanley analyst directly asked, “So, how do you monetise AI?” He pointed out that competitors are using AI to make money directly.

  • Cook’s Answer Didn’t Deliver a Clear Strategy

  • Cook did not reveal a solid plan to make money, such as an AI subscription or paid services. Instead, he said Apple is building AI more deeply into its products. He said this would “create great value” and open opportunities. However, he didn’t explain how it would make money from AI.

  • The Article’s Tone — Critical / Skeptical

  • The article says that Apple earns high profits and invests in AI. Still, it has not shown a clear way to make money from AI features. In contrast, competitors are increasingly using paid AI services and enterprise deals.

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