Mark Zuckerberg passed all 2024 by telling investors that artificial intelligence would be the key to the future of his company, Meta. In 2025 he plans to put his money where his mouth is.
On Friday, Mr Zuckerberg said the company expects its capital spending in 2025 to come to about $ 65 to $ 65 billion, a large increase compared to about $ 38 to 40 billion META dollars spent in 2024.
Much of this amount will make and expand the data centers, warehouse size buildings that provide the information technology that owned the META products and algorithms in all its applications, which include Facebook, Instagram and Whatsapp.
“This is a huge effort and in the coming years it will drive our basic products and businesses. They will unlock historic innovation and extend the leadership of American technology,” Mr Zuckerberg said in a position on his Facebook page.
He noted that the company is also expected to hold over 1.3 million graphics or GPUs by the end of the year. A GPU is a type of computer chip superior to the type of computing power required for AI systems. As applications and products powered by AI have increased more popular in recent years, there is a lack of GPUs throughout the industry, with technology companies large and small to buy as much as they can from companies such as NVIDIA.
And despite the many redundancies and cuts in the company’s workforce for the last three years, Mr Zuckerberg said he was planning to continue to hire “important” to develop teams responsible for work in AI and related products.
Meta’s share price rose about 1.7 % on Friday.
Silicon Valley’s technological giants are locked in an infrastructure equipment race as they compete to build the future of artificial intelligence. Google, Microsoft and Amazon have promoted billions of dollars for data centers and infrastructure projects and have not marked any deceleration of spending on the predictable future.
On Tuesday, President Trump announced a joint venture between Openai, Softbank and Oracle called Stargate, which aims to invest at least $ 100 billion in US database centers. The team behind the project stated that it could invest up to half a trillion of dollars in Stargate over the next four years. Elon Musk, who manages a competitive start of artificial intelligence, later challenges this figure.
Since Mr Trump was elected in November, Mr Zuckerberg tried to repair their long relationship. Mr Zuckerberg traveled many times to Mr Trump’s Mar-A-A-Lago resort, donated and watched his inauguration and relaxed the restrictions on Meta’s speech, an issue that conservatives have stabilized for years.
Mr Trump has promised to accelerate American AI production to compete with China for world leadership in technology. On Thursday, he signed an executive mandate with the aim of “removing barriers” to the development of AI in the United States.
Meta’s announcement on Friday could be regarded as “a response to the Stargate announcement earlier this week to remind investors its leadership position at AI,” RBC Capital Markets analysts wrote in a research note. Meta is scheduled to mention its latest profits next week, when details such as capital expenditure plans are usually announced to investors.
Meta has long meant its intentions to invest largely in the data centers. The company charged $ 4.3 billion restructuring in 2023, after deciding to redesign many of its future data projects to prepare for AI projects. It has expanded the imprint of the data center to dozens of locations around the world from Odense, Denmark in Huntsville, Ala.
Mr Zuckerberg said he plans to continue spending the infrastructure strongly to support what he thinks will be the future of IT, powered by AI Chatbots and other programs.
This also includes Llama, META’s AI AI technology, which can be freely downloaded by independent software developers to supply their own AI applications.
Last year, Meta announced that it will build its newest data center in Richland Parish, LA. . ”
“Let’s go to build!” He wrote on his Facebook page and added a bending-fiction emoji.
