Meta Platforms Inc. intends to invest up to $65 billion in artificial intelligence initiatives in 2025, as announced by CEO Mark Zuckerberg.
The investment will support the construction of a massive data center and an increase in AI team hiring. Zuckerberg stated that the new data center would be substantial enough to cover a significant portion of Manhattan.
In his Facebook post, Zuckerberg highlighted that Meta aims to activate approximately one gigawatt of computing power and will conclude the year with over 1.3 million graphics processing units.
This announcement follows a recent collaboration between OpenAI, SoftBank Group Corp., and Oracle Corp., which launched a $100 billion joint venture named Stargate to enhance AI infrastructure across the U.S.
Despite earlier concerns about overspending in the AI sector, Zuckerberg affirmed that the potential risks are outweighed by the necessity to remain competitive in what he considers a pivotal technology for the next 10 to 15 years.
Wall Street analysts had anticipated capital expenditures of $51.3 billion for Meta in 2025. Following the announcement, Meta's stock initially dipped in premarket trading but later rose by 1.7% once the market opened, reflecting analyst optimism regarding the company's strategic direction.