Meta to Invest $65 Billion in AI Projects, Building Massive Datacenter
Meta Platforms Inc. is allocating up to $65 billion to artificial intelligence initiatives by 2025. The investments will include the construction of a colossal new datacenter and expansion in AI hiring.
The company aims to establish a datacenter "large enough to encompass a significant portion of Manhattan," as announced by CEO Mark Zuckerberg in a Facebook post. By 2025, Meta plans to deploy a gigawatt of computing capacity and acquire over 1.3 million graphics processing units.
"This undertaking is immense and will drive our core offerings, ignite unprecedented advancements, and strengthen America's technological dominance," Zuckerberg stated.
Like other tech giants, Meta is prioritizing the development of larger datacenters to accommodate the escalating computing demands of advanced AI systems. Recently, OpenAI, SoftBank Group Corp., and Oracle Corp. formed a $100 billion joint venture named Stargate to facilitate the construction of datacenters and AI infrastructure across the United States.
Analysts had projected Meta's capital expenditures to reach $51.3 billion in 2025, according to Bloomberg estimates. Despite initial declines in premarket trading upon the announcement, Meta shares experienced a 1.4% increase at 9:43 a.m.