Zuckerberg unveils Meta’s massive $65 billion investment in AI and infrastructure

Meta Platforms Inc. is set to invest up to $65 billion in artificial intelligence initiatives in 2025, including the construction of a massive new data centre and a significant expansion of its AI teams, CEO Mark Zuckerberg announced on January 24.

Zuckerberg shared on Facebook that the company plans to build a data centre so large it could cover a substantial portion of Manhattan, Caliber.Az reports via Bloomberg.

The investment will help Meta bring around one gigawatt of computing power online in 2025 and aims to end the year with more than 1.3 million graphics processing units, he added.

"This is a massive effort, and in the coming years, it will drive our core products, unlock historic innovation, and reinforce America’s leadership in technology," Zuckerberg wrote.

Meta has made significant AI investments over the last few years, including a recently announced $10 billion data centre in Louisiana. The company has also purchased new computer chips to power innovations such as its AI assistant and Ray-Ban smart glasses. Additionally, Zuckerberg confirmed that Meta will significantly expand its AI teams throughout 2025.

The announcement comes shortly after OpenAI, SoftBank Group Corp., and Oracle Corp. revealed a $100 billion joint venture named Stargate, which will focus on building data centres and AI infrastructure across the US.

While Zuckerberg acknowledged the possibility that Meta and its competitors might be overspending on AI, he emphasized that the potential rewards of getting ahead in this transformative technology outweigh the risks. "The downside of being behind is that you’re out of position for the most important technology of the next 10 to 15 years," he said in an interview last summer with Bloomberg’s Emily Chang.

Wall Street had anticipated that Meta would spend $51.3 billion on capital expenditures in 2025, according to Bloomberg estimates. While Meta’s initial announcement led to a dip in stock price during premarket trading, the stock rose by as much as 1.7% once the markets opened, reflecting positive analyst sentiment.

"Meta’s sharp increase in capital spending for 2025, reaching as high as $65 billion, may be its best move for driving future growth and positioning itself as an AI leader," wrote Robert Schiffman, Senior Credit Analyst at Bloomberg Intelligence.

By Tamilla Hasanova