Meta plans to invest up to $65 billion in 2025 to enhance its artificial intelligence infrastructure, CEO Mark Zuckerberg announced on Friday.
The move aims to strengthen Meta’s position against competitors OpenAI and Google in the rapidly evolving AI technology landscape.
The investment includes the development of a data center exceeding 2 gigawatts, large enough to span a substantial portion of Manhattan, and an aggressive push to hire for AI-related roles. Meta also aims to end the year with more than 1.3 million Nvidia AI chips and bring 1 gigawatt of computing power online by 2025.
“This will be a defining year for AI,” Zuckerberg stated in a Facebook post. “This is a massive effort, and over the coming years, it will drive our core products and business.”
The announcement comes as major tech companies escalate their AI investments. Earlier this month, Microsoft revealed plans to spend $80 billion in fiscal 2025 on data centers, while Amazon projects its AI-related spending for 2025 to surpass $75 billion. Additionally, OpenAI, SoftBank, and Oracle recently announced the $500 billion Stargate venture to expand AI infrastructure across the U.S.
Meta has positioned itself as a significant player in the AI field, offering its Llama AI models for free to consumers and businesses, a move that sets it apart from rivals. The company has also developed an AI chatbot and Ray-Ban smart glasses, which further solidify its role in the competitive AI race.
Analysts believe Meta’s announcement was timed to address market pressures following Stargate’s launch. “Zuckerberg is signaling to the market that he does not want to be second in the AI race,” said D.A. Davidson analyst Gil Luria.
Meta’s AI assistant, integrated across its platforms, is expected to serve over 1 billion people by 2025, up from approximately 600 million monthly users last year.
The projected $60 billion to $65 billion spending marks a substantial increase from Meta’s estimated $38 billion to $40 billion expenditure last year, surpassing analysts’ forecast of $50.25 billion for 2025.
Meta is set to release its fourth-quarter earnings on January 29, with shares trading 1% higher following the announcement.
