Categories: Business

Meta to spend up to $65 billion on AI efforts in 2025

(BLOOMBERG) – Meta Platforms Inc. plans to invest up to $65 billion on AI-related projects in 2025, including building a giant new data center and increasing hiring in AI teams. AI, CEO Mark Zuckerberg said Friday.

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The company plans to use the funds to build a data center “so large it would cover a significant portion of Manhattan,” Zuckerberg said in a Facebook post. Meta plans to bring a gigawatt of computing power online in 2025 and is expected to end the year with more than 1.3 million graphics processing units, he added.

“This is a massive effort, and for years to come, it will drive our core products and businesses, unlock historic innovation, and extend America’s technological leadership,” Zuckerberg wrote in the post.

Meta, like other leading technology companies, has pushed to build larger data centers to support growing computing demands to develop more advanced AI systems. Earlier this week, Openai, Softbank Group Corp. and Oracle Corp. announced a $100 billion joint venture called Stargate to build data centers and AI infrastructure projects in the United States.

Analysts expected capital spending of $51.3 billion in 2025, according to estimates compiled from Bloomberg. Meta shares initially fell on the news in pre-market trading, but the stock was up 1.4% as of 9:43 a.m.

(Updates with more details from second paragraph.)

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