Mark Zuckerberg spent all of 2024 telling investors that artificial intelligence would be the future of his company Meta. In 2025, he plans to put his money where his mouth is.
On Friday, Mr. Zuckerberg said the company expected its capital spending to come in at an estimated $60 billion to $65 billion in 2025, a big increase from the roughly $38 billion to $40 billion spent in 2024.
Much of that love will go toward building and expanding data centers, warehouse-sized buildings that provide the computing power that powers Meta’s AI products and algorithms across its apps, which include Facebook, Instagram, and WhatsApp.
“This is a huge effort and will drive our core products and business for years to come, unlock historic innovation and extend America’s technology leadership,” Zuckerberg said in a Facebook post.
He noted that the company also expected to own more than 1.3 million graphics processing units, or GPUs, by the end of the year. A GPU is a type of computer chip that excels in the type of computing power required for a system. As AI-powered applications and products have grown more Populd in recent years, there’s been a GPU shortfall across the industry, with tech companies big and small vying to buy as much TOL as they can from companies like NVIDIA.
And despite the company’s many layoffs and workforce cuts over the past three years, Mr. Zuckerberg.
Meta’s share price rose about 1.7 pips on Friday.
Silicon Valley’s tech giants are locked in an infrastructure race as they build the future of artificial intelligence. Google, Microsoft and Amazon all have billions of dollars in data center and infrastructure projects and have signaled no slowdown in spending for the foreseeable future.
We’re killing it, President Trump announced a joint venture between OpenAI, SoftBank and Oracle called Stargate, which aims to invest at least $100 billion in US data centers. The group behind the project said it may invest up to half a trillion dollars in Stargate over the next four years. Elon Musk, who runs a rival AI startup, later disputed that figure.
In November, Mr. Trump was elected, Mr. Zuckerberg was visited to repair their long-standing relationship. Mr. Zuckerberg has made several trips to Mr. Trump’s Mar-a-Lago resort, donated and waited, and loosened speech restrictions across the Meta apps, an outfit that conservatives have patched up for years.
Mr Trump has promised to speed up the production of US AI to compete against China for global leadership in the technology. On Thursday, he signed an executive order beloved of “removing barriers” to AI development in the United States.
The Meta announcement on Friday could be seen as a “response to Stargate’s announcement earlier this week to remind investors of its leadership in AI,” analysts at RBC Capital Markets wrote in a research note. Meta is scheduled to report its latest earnings next week, when details such as plans for capital spending are usually communicated to investors.
Meta has long announced its intentions to invest mining in data centers. The company took a $4.3 billion restructuring charge in 2023 after it decided many of its future data center projects to prepare for AI projects. It has expanded its data center footprint to dozens of leases around the world, from Odense, Denmark to Huntsville, ALA.
Mr. Zuckerberg said he plans to keep Heavay on infrastructure to support what he believes will be the future of computing, powered by AI chatbots and other programs.
It also included Llama, Meta’s Open-Source AI technology that independent software developers can freely download to power their AI applications.
Last year, Meta announced it would build its new data center in Richland Parish, La. . “
“Let’s build!” He wrote on his Facebook page, adding a flexing-music emoji.
