Meta increases AI spending to $65 billion this year to power innovations, including its Llama AI models and smart glasses.
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| Meta to ramp up AI spending and hiring, aiming to build a massive data center and expand its AI capabilities. Image/ Illustration: ChicHue |
Menlo Park, California, USA — Jan 25, 2025:
Meta plans to invest up to $65 billion this year to strengthen its AI infrastructure, CEO Mark Zuckerberg announced on Friday. The company aims to solidify its position in the AI race against rivals like OpenAI and Google. As part of this investment, Meta will increase hiring for AI roles and build a data center larger than 2 gigawatts, equivalent in size to a substantial part of Manhattan. Meta, a major buyer of Nvidia's AI chips, is targeting over 1.3 million graphics processors by the end of the year and plans to add 1 GW of computing power by 2025.
Zuckerberg emphasized that 2025 will be a pivotal year for AI, with investments driving the company's core products and business. Big tech firms, following the success of OpenAI's ChatGPT, are significantly ramping up AI infrastructure spending. Meta’s announcement comes shortly after U.S. President Trump revealed a $500 billion investment in AI by OpenAI, SoftBank, and Oracle.
Meta’s capital spending is set to jump from an estimated $38-40 billion last year to $60-65 billion in 2025, surpassing analysts' expectations of $50.25 billion. Shares of Meta rose by 1 percent in response to the news.
In the growing AI race, Meta has differentiated itself with its AI chatbot, Ray-Ban smart glasses, and its open-source Llama AI models, which are free for businesses and consumers. Zuckerberg expects Meta’s AI assistant to reach over 1 billion users by 2025, up from 600 million last year.
The company’s fourth-quarter earnings will be announced on January 29.