In this article, Meta CEO Mark Zuckerberg announced on Friday that the company plans to invest approximately $60 billion to $65 billion in capital expenditures in 2025 to further develop its artificial intelligence infrastructure. Zuckerberg emphasized that 2025 will be a crucial year for AI and revealed that Meta is constructing a large data center that would occupy a significant area of Manhattan to support its AI services. Moreover, Meta aims to introduce about 1 gigawatt in compute and finish the year with over 1.3 million graphics processing units.
Zuckerberg stated in a Facebook post, “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.” Following the announcement, Meta shares reached a new all-time high, closing at $647.49 on Friday.
While Meta has been investing billions in AI and intensifying its research and development efforts in recent years, the market is highly competitive, and it may take time before investors see significant returns. During an April call with investors, Zuckerberg mentioned that Meta’s AI products will require a “multiyear investment cycle” to become profitable services, highlighting the company’s strong track record in this area.
Despite a 16% drop in Meta’s shares at the time, the company still heavily relies on revenue from digital advertising. Zuckerberg expressed his anticipation that Meta’s AI digital assistant will become the primary assistant for over 1 billion users. He also mentioned that Meta is developing an AI engineer to contribute more code to their research and development endeavors.
Zuckerberg reassured in his Facebook post that Meta has the financial resources to sustain its investments in the upcoming years.
