Meta Platforms intends to enhance AI development by investing $65 billion, which includes constructing new data centers and launching a significant hiring initiative.
Meta Platforms has revealed its plan to invest up to $65 billion in 2025 to enhance its artificial intelligence (AI) capabilities, positioning itself against competitors like OpenAI and Google.
CEO
Mark Zuckerberg detailed the strategy, which involves expanding AI roles and building a data center with the capacity to produce over 2 gigawatts of power.
As a significant buyer of Nvidia’s AI chips, Meta anticipates deploying 1.3 million graphics processors by the end of the year and bringing online 1 gigawatt of computing power by 2025. Zuckerberg characterized this initiative as a pivotal year for AI, poised to greatly impact Meta's products and operations.
This move aligns with similar investments by other tech leaders.
Recently, Microsoft outlined plans to allocate $80 billion for data centers in fiscal 2025, whereas Amazon's expected spending is forecasted to exceed $75 billion.
Meta’s announcement comes in the wake of Stargate's formation, a collaboration between OpenAI, SoftBank, and Oracle, aimed at investing $500 billion in AI infrastructure.
Following the news, Meta's shares rose by 1%.
Through its Llama AI models and AI-driven products like Ray-Ban smart glasses, Meta has asserted itself as a significant contender in the AI arena.
Zuckerberg projects that by 2025, Meta’s AI assistant will reach over 1 billion users, a notable increase from the 600 million monthly users reported in 2024. The company's capital expenditure for 2025 shows a substantial rise from the projected $38-40 billion in 2024, surpassing analysts' predictions of $50.25 billion.
Meta is set to announce its fourth-quarter results on January 29.