Meta to invest $60-$65 billion in AI infrastructure in 2025

Meta expects its AI assistant to serve over one billion users in 2025, up from 600 million monthly active users in 2024
An undated image of Mark Zuckerburg. — iStock
An undated image of Mark Zuckerburg. — iStock

Meta CEO Mark Zuckerberg announced on Friday that the platform plans to invest $60–$65 billion in 2025 to expand its artificial intelligence (AI) infrastructure, aiming to cement its position as a leader in the AI field.

This investment represents a substantial increase from Meta’s projected expenditure of $38–$40 billion in 2024 and surpasses analysts’ expectations of $50.25 billion for 2025.

As part of this initiative, Meta intends to build a two-gigawatt data centre, occupying a significant portion of Manhattan, accelerate hiring for AI-focused roles, and conclude the year with up to 1.3 million Nvidia AI chips, adding 1 gigawatt of computational power to its operations.

Meta to invest $60-$65 billion in AI infrastructure in 2025

In a social media post, Zuckerberg stated: “This will be a defining year for AI. This is a massive effort, and over the coming years it will drive our core products and business.”

Meta’s announcement comes amidst intensifying competition in the AI sector. Microsoft is planning to invest $80 billion in fiscal 2025 to develop advanced data centres, while Amazon anticipates exceeding its estimated $75 billion spending for 2024.

D.A. Davidson analyst Gil Luria commented: “Zuckerberg is signalling to the market he does not want to be second in the AI race. The timing of the announcement was likely influenced by Stargate, which created urgency around sending a message.”

Meta has emerged as a formidable player in the AI landscape, setting itself apart with cutting-edge AI offerings, including Ray-Ban smart glasses and open-source Llama AI models that provide free access for businesses and consumers alike.

The platform anticipates its AI assistant will serve over 1 billion users by 2025, up from 600 million monthly active users in 2024.

Following this major announcement, Meta’s shares rose by 1%. The company is set to release its Q4 earnings report on January 29.