Meta plans major expansion in AI infrastructure, data centers, and hiring in 2025.
Meta Platforms, led by CEO
Mark Zuckerberg, has declared an intention to invest up to $65 billion in artificial intelligence (AI) infrastructure by 2025. This investment strategy aims to strengthen the company's competitive edge in AI against industry rivals like OpenAI and Google.
As part of its investment, Meta plans to expand its workforce to fill AI-related roles and embark on constructing a state-of-the-art data center capable of generating over 2 gigawatts of power.
Meta is currently a significant purchaser of Nvidia’s AI chips and has outlined plans to deploy 1.3 million graphics processors by the end of the year.
Additionally, the company aims to bring 1 gigawatt of computing power online by 2025. This initiative is part of a broader strategic push by Meta to integrate AI more deeply into its products and business operations.
The company's move aligns with similar investments made by tech industry peers.
Microsoft has announced its intention to spend $80 billion on data centers in fiscal 2025. Meanwhile, Amazon plans to exceed $75 billion in its infrastructure investments.
Meta's announcement coincides with the launch of Stargate, a joint venture involving OpenAI, SoftBank, and Oracle, that aims to invest $500 billion in AI infrastructure.
Following the announcement, Meta's stock saw a 1% increase.
The company continues to enhance its AI-driven offerings, such as the Llama AI models and AI-integrated products like Ray-Ban smart glasses.
Zuckerberg projects that Meta’s AI assistant will reach over 1 billion users by 2025, up from 600 million monthly users in 2024.
The planned capital expenditure for 2025 surpasses the company's estimated spending of $38-40 billion in 2024, exceeding market analysts' forecast of $50.25 billion.
Meta’s scheduled report for its fourth-quarter results will be on January 29.