Meta Platforms Inc., the parent company of Facebook, Instagram, and WhatsApp, has announced ambitious plans to invest between $60 billion and $65 billion in 2025 to expand its artificial intelligence (AI) infrastructure.
This move comes as CEO Mark Zuckerberg dismisses concerns over the rise of Chinese AI startup DeepSeek, which has been making waves with its cost-effective AI models.
Meta: Record Profits and Massive AI Investment Plans
Meta reported surging profits and revenue for 2024, with net income soaring 59 percent to $62.36 billion and fourth-quarter profits jumping 49 percent to $20.84 billion.
Revenue reached $164.5 billion, up 22 percent from 2023, driven by stronger advertising performance.
The company’s user base also grew to 3.35 billion daily active users across its platforms in December 2024, a 5 percent increase year-over-year.
Meta’s massive investment in AI infrastructure is aimed at strengthening its position in the AI technology race.
The company plans to build a 2-gigawatt data center, large enough to cover a significant part of Manhattan, and aims to end the year with more than 1.3 million graphics processors.
Mark expects Meta’s AI assistant to serve more than 1 billion people in 2025.
DeepSeek Threat and Mark Zuckerberg’s Response
Despite DeepSeek’s rapid ascent and its claims of building a model that can rival top-tier models from American companies at a fraction of the cost, Mark remains unfazed.
He believes that Meta’s open-source approach with its foundational large language model (LLM) Llama will give it a competitive edge.
Mark stated that DeepSeek’s success has only strengthened Meta’s conviction in its AI strategy.
Meta faces both regulatory challenges and emerging competition in the AI landscape.
The company has scaled back diversity initiatives and relaxed content moderation rules on its platforms, which could potentially concern major advertisers.
However, Mark remains optimistic about Meta’s future, emphasizing the importance of American technology winning and defending the company’s values and interests abroad.
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