Meta’s CEO, Mark Zuckerberg, announced on Friday that the tech giant is planning to allocate $60 billion to $65 billion in capital expenditures this year to strengthen its artificial intelligence (AI) capabilities.
In what he described as a “defining year for AI,” Zuckerberg shared that Meta is building a massive data center designed to support its AI infrastructure. This facility, he noted, would be large enough to “cover a significant part of Manhattan.” By the end of 2025, Meta aims to operate with over 1.3 million graphics processing units (GPUs) and add 1 gigawatt of computing power to its operations.
“This is a monumental initiative,” Zuckerberg stated in a Facebook post, “and it will propel our core products, spark groundbreaking innovation, and enhance American technological leadership for years to come.”
Expanding AI Ambitions
Meta’s dedication to AI innovation has been evident in recent years as the company continues to pour billions into research and development. However, the competitive nature of the AI landscape means that investors may need to wait before these investments translate into profitable services.
During an investor call last April, Zuckerberg emphasized that Meta is in the midst of a “multiyear investment cycle” for AI. While returns may take time, he expressed confidence in the company’s ability to scale its AI solutions, citing Meta’s strong track record of turning investments into successful outcomes.
Shares of Meta surged to an all-time high on Friday following the announcement, reflecting optimism among investors.
AI Products in the Spotlight
Among Meta’s AI initiatives is the Meta AI digital assistant, which Zuckerberg expects to become a market leader, serving over 1 billion users. Additionally, the company is developing an AI engineer capable of contributing substantial amounts of code to its research and development efforts.
“We have the resources to continue driving innovation in the years to come,” Zuckerberg assured.
The Road Ahead
Despite its heavy investment in AI, Meta still relies primarily on digital advertising for revenue. While this strategy has brought significant success, Zuckerberg’s vision for AI aims to diversify the company’s offerings and position it at the forefront of technological advancement.
With ambitious goals, substantial investments, and a clear focus on AI, Meta is betting big on shaping the future of technology.
Luyanda is a digital marketing & SEO professional. She is a part of the Minority Business Review digital marketing team. She is a Boston Media House Graduate who obtained a Diploma in Media Practice majoring in Digital Marketing.