The top line
Meta will increase its spending sharply in 2025 as part of its artificial intelligence push, its centennial CEO Mark Zuckerberg announced on Friday, as Meta and its production AI rivals The battle between will come to the fore this week. President Donald Trump announced a $500 billion “Stargate” joint venture with Opene.
Mark Zuckerberg, center, at Trump’s inauguration.
Key facts
Zuckerberg Zuckerberg said Keep up with updates and predictions for Meta’s AI push in 2025, on the company’s Threads social media site.
Perhaps Zuckerberg’s biggest revelation on Friday was his guidance for Meta in capital spending of $60 billion to $65 billion in 2025.
That’s the consensus analyst forecast for capital spending of $51 billion this year, according to FactSet, and Zuckerberg’s median forecast of $63.5 billion is higher than Meta’s $38.4 billion and 2023 capex. would be more than 129 percent over $27.3 billion.
Zuckerberg announced that Meta will “significantly expand its AI teams” as part of its increased spending.
The billionaire also predicted Meta’s Lama 4 large language model “will become the main state of the art” AI model and that it will end 2025 with more than 1.3 million graphics processing units, including in Meta. Powering Generative AI programs include highly coveted NVIDIA-designed processors. Ai, Zee’s Guru and Openai’s Chetgpt.
Meta Stocks rise
After initially falling 1% premarket after Zuckerberg’s announcement, Meta shares rallied on Friday, before rising 0.9% by mid-morning shortly after the market opened. Later it was increased to 1.6 percent. Metastock hit a record intraday share price of $646.90 and an all-time high market value of more than 1.6 trillion. Meta’s shares are up more than 8% year-to-date.
Key background
Zuckerberg’s 2025 outlook for generative AI comes during a whirlwind week after Trump, his first full day in office, announced a $500 billion joint venture to power open data center infrastructure with technology. was designed to form Stargate was considered a win for OpenAI in its battle against Zee, Meta, and Amazon-backed Anthropic to create the best artificial general intelligence model, and the project drew the attention of Musk and OpenAI CEO Sam Altman. Mabin’s closeness to Trump highlighted a very public dispute. Allied musk apparently Undercut President. Meta’s push beyond social media is its 2021 name change from Facebook to Meta. Wall Street initially balked at the company’s billions of dollars in advanced tech research, as Metastock crashed 64% in 2022, before improving financial performance and a broader investor base took every turn. A rapid stock change in the commodity was reinforced. Since Trump won a second term in November, Zuckerberg has overseen a major culture shift at his company, scrapping its reality checks and diversity, equity and inclusion. (DEI) As Zuckerberg programs, he dismisses the company’s culture as losing its “masculine energy.” Meta remains an advertising company on paper, with 98 percent of its revenue coming from social media advertising in the most recent quarter.
Forbes Valuations
Zuckerberg is the fourth richest person in the world with a net worth of $222 billion, trailing only fellow American technology moguls in Tesla CEO Elon Musk, Amazon Chairman Jeff Bezos and Oracle Chairman Larry Ellison. has been Zuckerberg owns about 13% of Meta, which is worth about $200 billion.
What to see
Meta will report financial results from the fourth quarter of 2024 on Wednesday afternoon. Consensus estimates call for earnings of $6.75 per share and revenue of $47 billion, both of which would be quarterly records.
Further reading
