In This Article:
Bloomberg / Contributor / Getty Images
Meta Platforms CEO Mark Zuckerberg during the Meta Connect event in Menlo Park, California on Sept. 25, 2024Key Takeaways
-
Meta Platforms plans to invest $60 billion to $65 billion in capital expenditures this year as the tech giant expands its artificial intelligence efforts, CEO Mark Zuckerberg posted on Facebook Friday.
-
Zuckerberg said Meta will build an AI data center “so large it would cover a significant part of Manhattan.”
-
Analysts said they expect the functionality of Meta AI's Llama 4 large language model to ramp up this year.
-
Shares of Meta climbed to an all-time high Friday, and have gained close to 65% over the past 12 months.
Meta Platforms (META) CEO Mark Zuckerberg said the company plans to invest $60 billion to $65 billion in capital expenditures this year, up from an estimated $38 billion to $40 billion in 2024, as the tech giant expands its artificial intelligence efforts.
Meta's stock price rose 1.7% Friday to close at an all-time high of $647.49 following the announcement, topping a record set just a day earlier. The shares have gained close to 65% over the past 12 months.
Zuckerberg said 2025 “will be a defining year for AI,” in a Facebook post on Friday, outlining Meta's intentions to build an AI data center “so large it would cover a significant part of Manhattan.” Meta expects the data center to bring online 1 gigawatt of computing power in 2025, and to end the year with more than 1.3 million GPU chips.
The CEO’s announcement comes just days after that of Stargate, the $500 billion AI project President Donald Trump announced Tuesday, which drove several related AI and nuclear energy stocks higher.
Zuckerberg also said he expects Meta AI to serve more than 1 billion people, powered by its Llama 4 large language model. In October, Zuckerberg said Llama 4 was "well into its development," with smaller models set for launch sometime early this year.
Analysts at JPMorgan told clients Friday they believe Meta AI functionality will ramp up with Llama 4 this year, with some features similar to OpenAI’s Operator AI agent released Thursday.
Read the original article on Investopedia