Meta Platforms, led by CEO Mark Zuckerberg, plans to invest up to US$65 billion in artificial intelligence (AI) projects in 2025. This includes constructing a massive new data centre and significantly expanding its AI teams. Zuckerberg announced in a Facebook post on Friday, highlighting the scale of the investment and its importance to the company’s future.
Expanding AI infrastructure to unprecedented levels
Meta’s ambitious plans include building a vast data centre that would span a significant portion of Manhattan. By 2025, the company aims to bring a gigawatt of computing power online, ending the year with over 1.3 million graphics processing units (GPUs).
“This is a massive effort, and over the coming years, it will drive our core products and business, unlock historic innovation, and extend American technology leadership,” Zuckerberg wrote.
Meta has been steadily investing in AI for years. The company announced a new US$10 billion data centre in Louisiana earlier this year. It has acquired advanced computer chips to power AI-driven products like its assistant and Ray-Ban smart glasses. Zuckerberg also stated that Meta will significantly expand its AI teams in 2025, further positioning the company as a leader in the industry.
Competing with rivals in the AI race
Zuckerberg’s announcement comes shortly after a major development in the AI sector. OpenAI, SoftBank, and Oracle recently revealed their Stargate Project, a joint venture planning to invest up to US$500 billion in AI infrastructure across the United States over the next four years.
Meta’s capital expenditure for 2025 reflects a bold move, with a 50% increase from the projected spending in 2024 and more than double the investment from 2023. Final figures for 2024 will be released on January 29 during Meta’s fourth-quarter financial results announcement.
While Zuckerberg acknowledged the risk of overspending, he argued that missing out on a transformative shift in computing would be a more significant loss. In July, he noted, “There’s a chance that companies are overbuilding now and might look back thinking they overspent by billions. But the downside of being behind in AI is far more significant because this is the most important technology for the next 10 to 15 years.”
Market reactions and analyst insights
According to Bloomberg estimates, Wall Street analysts initially anticipated Meta’s 2025 capital expenditures to be US$51.3 billion. The announcement of an even larger investment briefly caused Meta’s shares to dip in premarket trading. However, they rebounded during market hours, rising by 1.7%. Broadcom, which provides chip design services to Meta, saw its shares jump by 3.9%.
Robert Schiffman, senior credit analyst at Bloomberg Intelligence, expressed optimism about the spending increase. “Meta’s sharp rise in 2025 capital spending maybe its best use of capital, driving future growth and positioning itself as a leader in AI capabilities,” he said.
Zuckerberg’s decision to share these spending plans on Facebook before the firm’s earnings report is unusual but permissible. US regulators have deemed social media platforms appropriate for companies to disclose material information to investors.
Meta’s bold investment signals its commitment to AI as a cornerstone of future growth and innovation. The company is positioning itself to lead in a rapidly evolving field, reshaping technology worldwide.
