Meta Plans Ambitious $65B Investment in Artificial Intelligence
Meta Platforms, Inc. (META) has unveiled plans to invest up to $65 billion in artificial intelligence (AI) initiatives by 2025. The company's CEO, Mark Zuckerberg, disclosed the news in a Facebook post.
Massive Data Center Development
Meta intends to construct a state-of-the-art data center of unprecedented size, "covering a significant part of Manhattan," as per Zuckerberg's statement. The facility aims to provide a gigawatt of computing power by 2025, housing over 1.3 million graphics processing units (GPUs).
AI Teams Expansion
Zuckerberg emphasized the company's commitment to "growing our AI teams significantly" in the coming year. This investment in human capital will enhance Meta's AI development capabilities.
Industry Competition and Overspending Concerns
Meta's announcement follows recent joint ventures by OpenAI, SoftBank Group Corp., and Oracle Corp. to invest $100 billion in AI infrastructure. Zuckerberg acknowledged the potential for overspending in the industry, but he stressed the importance of staying ahead of technological advancements.
Wall Street's Reaction
Initially, Meta's stock dipped in premarket trading, but it rebounded in New York, rising by 1.7%. Analysts have expressed optimism about the company's increased investment in AI. Bloomberg Intelligence's Robert Schiffman believes it "may be its best use of capital, driving future growth and positioning itself as a leader in AI capabilities."