As the competition between Meta and its generative AI rivals, such as OpenAI and Elon Musk’s xAI, intensifies this week with President Donald Trump’s announcement of the $500 billion “Stargate” joint venture with OpenAI, the centibillionaire CEO Mark Zuckerberg announced Friday that Meta will quickly increase its spending in 2025 as part of its artificial intelligence push.
In addition to providing updates and forecasts for Meta’s AI drive in 2025, Zuckerberg stated on the company’s social media platform Threads that “this will be a defining year for AI.”
Zuckerberg’s forecast of $60 billion to $65 billion in capital expenditures for Meta in 2025 was arguably his most significant disclosure on Friday.
Zuckerberg’s median expected capital expenditures of $62.5 billion would be 63% higher than Meta’s projected capital expenditures of $38.4 billion in 2024 and 129% higher than its projected capital expenditures of $27.3 billion in 2023. This is much more than the consensus analyst projections of $51 billion this year, according to FactSet.
Zuckerberg announced that as part of its increased expenditure, Meta will greatly grow its “AI teams.”
The billionaire also forecasted that by the end of 2025, Meta’s Llama 4 large-language model “will become the leading state of the art” AI model, with over 1.3 million graphics processing units—the highly sought-after Nvidia-designed processors that power generative AI programs like Meta AI, xAI’s Grok, and OpenAI’s ChatGPT.
After Trump concluded his first full day in office by launching a $500 billion joint venture to build expand the data center infrastructure to enable OpenAI’s technology, Zuckerberg’s 2025 prediction comes after a hectic week for generative AI. The project brought to light a highly publicized conflict between Musk and OpenAI CEO Sam Altman, as Trump’s close ally Musk reportedly undercut the president. Stargate was seen as a victory for OpenAI in its fight against companies like xAI, Meta, and Amazon-backed Anthropic to develop the best artificial general intelligence model.Since changing its name from Facebook to Meta in 2021, Meta has been pushing beyond social media. Before increasing financial performance and a general investor frenzy into all things AI supported the stock’s rebound, Wall Street first reacted negatively to the company’s billions of dollars in cutting-edge tech research, causing Meta’s stock to plummet 64% in 2022. Zuckerberg has been in charge of a significant cultural change at his firm since Trump was elected to a second term in November. He has criticized the company’s culture for lacking “masculine energy” and has ended its fact-checking and diversity, equity, and inclusion (DEI) initiatives. On paper, Meta is still an advertising firm since, in its most recent quarter, social media advertisements accounted for 98% of its total income.
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