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Meta's Ambitious $65 Billion Investment in AI Infrastructure Unveiled by Zuckerberg

Meta Platforms, led by CEO Mark Zuckerberg, has announced plans to invest up to US$65 billion this year to enhance its AI infrastructure, aiming to solidify its position in the competitive technology landscape. The company intends to intensify hiring for AI roles and construct a massive 2-gigawatt data center, comparable in size to a significant portion of Manhattan.


Meta's Ambitious $65 Billion Investment in AI Infrastructure Unveiled by Zuckerberg
Credit: Mark Zuckerberg

In a recent Facebook post, Zuckerberg expressed, "This will be a defining year for AI. This is a massive effort, and over the coming years it will drive our core products and business." Meta, a major purchaser of Nvidia's AI chips, aims to conclude the year with more than 1.3 million graphics processors and bring about 1 gigawatt of computing power online by 2025.


The tech industry's heavyweights have been pouring billions into AI infrastructure development following the achievements of OpenAI's ChatGPT. Meta's announcement follows U.S. President Donald Trump's revelation of a collaboration between OpenAI, SoftBank, and Oracle to establish a venture named Stargate, with a US$500 billion investment in AI infrastructure across the United States.


Microsoft recently disclosed plans to invest around $80 billion in fiscal 2025 for data center development, while Amazon.com anticipates surpassing its 2024 spending of approximately US$75 billion in 2025. Analyst Gil Luria from D.A. Davidson noted, "Zuckerberg is signaling to the market he does not want to be second in the AI race."


Meta has emerged as a significant player in the AI competition with innovations like its AI chatbot, Ray-Ban smart glasses, and an open-source strategy that allows free access to its Llama AI models for consumers and most businesses. Zuckerberg envisions Meta's AI assistant, available across its services, to cater to over 1 billion users by 2025, a substantial increase from the 600 million monthly active users in the previous year.


The projected capital spending of US$60 billion to US$65 billion for 2025 represents a notable surge from the estimated US$38 billion to US$40 billion expenditure in the previous year. This figure also surpasses analysts' forecast of US$50.25 billion for 2025, as per LSEG data. Meta is scheduled to announce its fourth-quarter results on January 29.

 
  • Meta plans to invest up to US$65 billion in AI infrastructure this year.

  • The company aims to end 2025 with over 1.3 million graphics processors.

  • Zuckerberg anticipates Meta's AI assistant to reach over 1 billion users by 2025.


Source: REUTERS

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