It’s possible Meta is overspending on AI, said Zuckerberg, but the risk of losing billions is better than missing out
“This is a massive effort, and over the coming years it will drive our core products and business, unlock historic innovation, and extend American technology leadership,” Zuckerberg wrote in the post.
Meta has invested significantly in AI over the last several years, and recently announced a new US$10 billion data centre in Louisiana. It has also bought new computer chips to power products like its AI assistant and its Ray-Ban smartglasses. Zuckerberg added that Meta will be “growing our AI teams significantly” in 2025.
Zuckerberg’s announcement comes days after OpenAI, SoftBank Group Corp. and Oracle Corp. announced a US$100 billion joint venture called Stargate to build out data centres and AI infrastructure projects around the U.S.
“I think that there’s a meaningful chance that a lot of the companies are over-building now, and that you’ll look back and you’re like, ‘oh, we maybe all spent some number of billions of dollars more than we had to,’” Zuckerberg told Bloomberg’s Emily Chang in July. “On the flip side, I actually think all the companies that are investing are making a rational decision, because the downside of being behind is that you’re out of position for like the most important technology for the next 10 to 15 years.”
Wall Street was expecting Meta to spend US$51.3 billion on capital expenditures in 2025, according to Bloomberg-compiled estimates. Shares of Meta initially fell on the news during premarket trading, but the stock rose as much as 1.7 per cent after exchanges opened in New York, reflecting optimism from analysts.
“Meta’s sharp increase in 2025 capital spending to as much as US$65 billion, rising well above last year’s and consensus, may be its best use of capital, driving future growth and positioning itself as a leader in AI capabilities,” Bloomberg Intelligence Senior Credit Analyst Robert Schiffman wrote on Friday.
—With assistance from Seth Fiegerman.