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Jan. 25, 2025, 9:44 a.m.
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Meta Announces $60-$65 Billion Investment in AI Infrastructure for 2023

Brief news summary

Meta's CEO Mark Zuckerberg has announced a bold investment plan for 2024, aiming for $60 to $65 billion in capital expenditures, a 50% increase from the previous year. This move underscores the company's commitment to artificial intelligence (AI) as a key component of its future. The strategy includes constructing a major data center in Manhattan, deploying 1 gigawatt of computing power, and integrating over 1.3 million GPUs by the end of 2025. Significant projects like Meta AI are expected to engage over 1 billion users, alongside the introduction of the new Llama 4 AI model, backed by a dedicated R&D team. This ambitious plan mirrors trends seen at competitors such as SoftBank’s Stargate project and Amazon Web Services, which are also pursuing major expansions. While analysts predict a more conservative budget of $51.3 billion, Zuckerberg's vision reflects Meta's determination to lead in technological innovation and bolster the U.S. position in the evolving AI landscape.

Meta is set to invest between $60 billion and $65 billion in capital expenditures this year, significantly expanding its artificial intelligence (AI) teams, as stated by CEO Mark Zuckerberg in a Facebook post on January 24. Zuckerberg noted that this year will be crucial for AI initiatives at Meta, revealing plans for a data center sizable enough to cover a large portion of Manhattan. The company aims to deploy 1 gigawatt of computing power and have over 1. 3 million GPUs in operation by the end of 2025. This infrastructure will support various AI projects, including Meta AI, which is anticipated to reach over 1 billion users in 2023; Llama 4, projected to become the leading AI model; and a new AI engineer currently under development that will aid in Meta's research and development. Describing the effort as monumental, Zuckerberg emphasized that it will enhance the company’s core products and business, drive unprecedented innovation, and bolster technology leadership in the U. S. Bloomberg reported that this planned capital expenditure exceeds Meta's estimated investment from 2024 by 50% and more than doubles its 2023 investment amount. Wall Street projections had anticipated that the company would allocate around $51. 3 billion for capital expenditures this year, which is less than what Zuckerberg announced. This announcement comes amid reports of additional investments in AI infrastructure.

President Donald Trump revealed on January 21 a major project named Stargate, aiming to create up to $500 billion worth of AI-focused data centers in the U. S. SoftBank is leading the funding for Stargate, joined by partners OpenAI, Oracle, and MGX, an AI-oriented sovereign wealth fund based in Dubai. On January 7, Amazon Web Services (AWS) announced its plan to invest a minimum of $11 billion in Georgia to bolster infrastructure for cloud computing and AI technologies, reinforcing its commitment to ongoing infrastructure investments nationwide.


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