Meta Platforms is set to invest between $60 billion and $65 billion in 2025 to enhance its artificial intelligence (AI) infrastructure, CEO Mark Zuckerberg announced on Friday. This represents a significant jump from the $38 billion to $40 billion spent in 2024, as Meta seeks to strengthen its position in the competitive AI landscape alongside rivals like OpenAI and Google.
Zuckerberg labeled 2025 as a “defining year for AI” in a Facebook post, revealing plans for a massive data center that would span a large portion of Manhattan. This state-of-the-art facility will add 1 gigawatt of computing power, housing over 1.3 million GPU chips by the end of the year, significantly boosting Meta’s AI capabilities.
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Meta’s Stock Reaches Record High Amid Investment Announcement
Following the announcement, Meta’s stock surged 1.7%, reaching a record high of $647.49. The company’s shares have climbed nearly 65% over the past 12 months, reflecting investor confidence in its aggressive AI investment strategy.
This comes just days after the unveiling of Stargate, a $500 billion AI initiative led by U.S. President Donald Trump, featuring partners such as OpenAI, SoftBank, and Oracle. The project has raised the stakes in the global AI race, prompting Meta’s response with a massive infrastructure expansion.
AI at the Heart of Meta’s Vision for the Future
Meta’s AI ambitions are centered on its Llama 4 large language model, which Zuckerberg expects will serve over 1 billion users by the end of 2025. The company also plans to release smaller AI models early in the year, as analysts predict significant advancements in functionality.
To support these efforts, Meta is expanding its workforce by hiring more AI specialists and continues to be a major purchaser of Nvidia’s AI chips, underscoring its commitment to staying at the forefront of AI development.
Fierce Competition in AI Investments Across Tech Industry
Meta’s latest investment announcement follows similar moves by other tech giants. Microsoft has committed $80 billion to data center development in fiscal 2025, while Amazon is planning to spend over $75 billion. These investments highlight the intense competition in the AI space, driven by the success of tools like OpenAI’s ChatGPT.
By differentiating itself with an open-source approach, offering its Llama AI models for free, Meta is positioning itself as a major player in the AI race. “Zuckerberg is signalling to the market that he does not want to be second in the AI race,” remarked Gil Luria, an analyst at D.A. Davidson.
