Meta Platforms, Inc. has announced plans to invest up to $65 billion in 2025 to expand its artificial intelligence (AI) infrastructure.
According to a Reuters report, Meta’s CEO Mark Zuckerberg aims to strengthen the company’s competitive edge against rivals such as OpenAI and Google in the rapidly evolving AI landscape.
Meta’s CEO, Mark Zuckerberg, emphasized the transformative potential of these efforts, stating, “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,” in a Facebook post.
As part of the investment, Meta plans to accelerate hiring for AI-focused roles, construct a data center with over 2-gigawatt capacity capable of powering a significant portion of Manhattan, and expand its fleet of Nvidia’s high-demand AI chips, aiming to exceed 1.3 million graphics processors by year-end. Additionally, the company intends to bring approximately 1 gigawatt of computing power online by 2025.
The $65 billion capital expenditure represents a significant leap from Meta’s estimated $38 billion to $40 billion expenditure in 2024
Workforce optimization measures
In a related development, Meta is also taking steps to optimize its workforce as part of its strategy to achieve these ambitious goals. The company plans to reduce its workforce by 5%, targeting underperforming employees.
- CEO Mark Zuckerberg outlined this decision in an internal memo and emphasized Meta’s focus on advancing transformative technologies like AI, smart glasses, and social media while ensuring top talent drives the company’s ambitious goals.
Zuckerberg further emphasized the company’s intent to “raise the bar on performance management” and accelerate the process of managing low performers in 2025 with the intention of backfilling the roles.
- The company’s AI assistant, currently available across its services, is expected to serve over 1 billion people by 2025, a sharp increase from the 600 million monthly active users recorded last year.
- Meta’s open-source approach with its Llama AI models has further differentiated it from competitors, allowing consumers and businesses to leverage its technology for free.
AI investment surge
Meta’s investment comes on the heels of significant developments in the AI sector.
- U.S. President Donald Trump has unveiled the Stargate Project, a landmark $500 billion initiative to bolster AI infrastructure across the United States. Partnering with industry leaders like OpenAI, SoftBank, and Oracle, the project aims to enhance U.S. AI capabilities, create 100,000 jobs, and secure a competitive edge over rivals like China. The first phase, involving data center construction, is already underway in Texas.
- Microsoft, in a parallel move, has announced an $80 billion investment for fiscal 2025 to expand its data center infrastructure. This initiative seeks to meet surging demand for AI computing power and maintain the company’s momentum in AI innovation.
- Amazon.com is also making a bold statement with plans to surpass $75 billion in AI-related spending by 2025. The investment is focused on enhancing AWS cloud services, optimizing logistics through AI-driven automation, and driving innovation in consumer products.
Meta has emerged as a big player in the AI race with its AI chatbot, Ray-Ban smart glasses and open-source approach.
