Meta Platforms is set to invest up to $65 billion (approximately Rs. 5,61,908 crore) in artificial intelligence initiatives by 2025. This announcement was made by Chief Executive Officer Mark Zuckerberg on Friday, detailing plans to construct a massive new data center and bolster hiring within AI teams.
According to Zuckerberg, the upcoming data center will be so extensive that it could cover a substantial portion of Manhattan. He also mentioned that Meta aims to bring about a gigawatt of computing power online by 2025, with projections indicating the company will have over 1.3 million graphics processing units by year’s end.
In his Facebook post, Zuckerberg emphasized the scale of this initiative, stating, “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.”
Meta has made considerable investments in AI over recent years, including the announcement of a new $10 billion (approximately Rs. 86,440 crore) data center in Louisiana. Additionally, the company has acquired new computer chips to enhance products such as its AI assistant and Ray-Ban smart glasses. Zuckerberg confirmed that the company will significantly expand its AI teams in 2025.
This news follows the recent announcement of a $100 billion (approximately Rs. 8,64,404 crore) joint venture called Stargate, launched by OpenAI, SoftBank Group Corp., and Oracle Corp., aimed at developing data centers and AI infrastructure across the United States.
For 2025, Meta’s anticipated capital expenditures represent about a 50% increase over the estimated spending for 2024 and more than double its expenditures from 2023. The final figure for capital expenditures in 2024 is expected to be revealed during the company’s fourth-quarter financial announcement on January 29.
While acknowledging the possibility that Meta and its peers might be overextending their AI investments, Zuckerberg noted that the potential downsides of falling behind in technology outweighed these risks. He remarked, “I think that there’s a meaningful chance that a lot of the companies are over-building now, and that you’ll look back and you’re like, ‘oh, we maybe all spent some number of billions of dollars more than we had to.’” However, he also emphasized that investing now is a rational choice given the critical importance of advancing technology over the next decade or more.
Wall Street analysts had anticipated Meta would allocate around $51.3 billion (approximately Rs. 4,43,444 crore) in capital expenditures for 2025. Following the announcement, Meta’s shares initially dropped in premarket trading but later increased by as much as 1.7% once the markets opened in New York, signaling analyst optimism. Broadcom Inc., a primary provider of chip design services for Meta and other companies, saw its shares rise by as much as 3.9% in response.
Bloomberg Intelligence’s Senior Credit Analyst Robert Schiffman commented that Meta’s notable increase in capital spending for 2025 might represent the most strategic use of its resources to drive future growth and establish its leadership in AI capabilities.
Zuckerberg’s decision to share Meta’s spending plans on Facebook ahead of the quarterly earnings announcement is rather atypical. Conventional practice tends to involve such projections being disclosed during financial results presentations or through formal regulatory filings and press releases.
Nevertheless, federal regulators have determined that social media can serve as a valid platform for companies to share significant information with investors.
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(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
