Meta Platforms (META.O) has announced plans to allocate up to $65 billion in 2025 to enhance its artificial intelligence (AI) infrastructure, CEO Mark Zuckerberg revealed on Friday. The investment is part of the company’s strategy to strengthen its competitive position against AI leaders OpenAI and Google.
As reported by Reuters, key to this initiative is the construction of a massive data center exceeding 2 gigawatts, capable of covering a large portion of Manhattan. Additionally, Meta will significantly increase hiring for AI roles to support its growing ambitions in the AI domain.
Meta, one of the largest buyers of Nvidia’s (NVDA.O) highly sought-after AI chips, aims to conclude 2025 with over 1.3 million graphics processors. The company also plans to bring approximately 1 gigawatt of computing power online that year.
“This will be a defining year for AI,” Zuckerberg stated in a Facebook post. “This massive effort will drive our core products and business over the coming years.”
The race among tech giants to dominate AI has intensified, with companies investing billions following the success of OpenAI’s ChatGPT. Meta has distinguished itself in the competition with offerings such as its AI chatbot, Ray-Ban smart glasses, and open-source Llama AI models, which are available for free to consumers and businesses.
Zuckerberg anticipates that Meta’s AI assistant, accessible across its platforms, will serve more than 1 billion users by 2025, a significant increase from the 600 million monthly active users reported last year.
The planned $60 billion to $65 billion capital expenditure for 2025 represents a substantial rise compared to the company’s estimated spending of $38 billion to $40 billion in 2024. It also exceeds analysts’ expectations of $50.25 billion, according to LSEG data.
Meta’s strategic investment underscores its commitment to shaping the future of AI and maintaining its competitive edge in the rapidly evolving tech landscape.