Meta to Spend $60B+ on AI, Countering Chinese Competition

Investors already got the warning! Yes, Mark Zuckerberg made it clear that Meta won’t stay behind in the game of AI. His idea to take things ahead is all planned and it’s quite evident that Zuck’s not just thinking small here. 

On Friday, Zuckerberg through a social media post just raised the stakes with a game-changing investment of $60 to $65 billion. He promised that he would redefine the landscape of artificial intelligence in 2025. No wonder – it’s going to cover everything from revolutionary new technologies to profound shifts in how we currently live and work.

Needless to say, with this Friday witnessed Meta’s stock price go high by 1.7% which ultimately reached the record of being an all-time high in number – $647.49. Astonishingly, the shares have skyrocketed, surging nearly 65% in just one year.

If that doesn’t look magical enough, then here’s more –

Mark Zuckerberg took to Threads to drop some exciting news about their upcoming Louisiana’s 2 GW data center. It’s so huge that it is supposed to cover most of Manhattan! 

His vision is more like having it as the ultimate digital companion for over a billion people worldwide

A gigawatt of raw computing power hits the grid, and by year’s end, they’ll be armed with a staggering 1.3 million GPUs.

Since AI is the future, and Zuckerberg is going all in. With a $60-65 billion capex investment fueling their growth, they’re building the AI teams that will revolutionize Meta. 

And he opines that this is just the beginning – they’re committed to leading the AI charge for the long haul.

Zuckerberg’s announcement triggered a brief dip in Meta’s stock Friday morning, however, it bounced back in no time.

Meta, in its Q3 earnings call, hinted at a massive spending spree on AI in 2025. Zuckerberg himself declared he was all in on AI, which led to the anticipation of revolutionary advancements.

AI wasn’t just a tool for him, it was a catalyst to reshape their entire approach. As a result, it’s hoped to supercharge their core business seemingly boundless.

Zuckerberg wasn’t saying anything until the shocking news from Silicon Valley revealed that DeepSeek, a previously unknown Chinese company, outperformed offerings from various open-source AI models including Anthropic, OpenAI and Meta.

The World Economic Forum in Davos, Switzerland, saw significant discussion this week centered around the implications of AI and China’s growing influence in the field.

Satya Nadella, the head of Microsoft and OpenAI’s primary investor, issued a stark warning. He said that the innovations emerging from China demand full attention. This is a race that they cannot afford to lose.

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