TECH NEWS – The head of Meta would spend no less than $65 billion on this massive AI data center!

Meta, along with Anthropic, Google and OpenAI, is one of the tech companies with a foundational AI model to create products and services that can monetize AI. According to Zuck, Meta is willing to spend up to $65 billion in capital expenditures (capex) to give the company the computing power to make their model, called Llama 4, the best in the market!

Zuckerberg talked about this in detail in a Facebook post. Zuck has significantly increased the capex from last year’s amount. Prior to his post, analysts were hoping that Meta would have a capex of $51-53 billion this year, but based on the post, the company plans to spend $60-65 billion on the open source model (and that’s why developers like it and the company can fine-tune it better).

Last year Meta spent $38 billion, so now the investment will be one and a half times this year! This came out shortly after US President Doland Trump announced the Stargate project. No, it’s not the sci-fi series you’re thinking of: the $500 billion Stargate is based on artificial intelligence, and OpenAI and Softbank have already backed it. Zuck wants to build an AI engineer to generate software code to help with the company’s R&D. Meta will build a massive 2-gigawatt data center, which Zuck says could cover a significant portion of a borough of New York City, Manhattan, at that scale…

Zuckerberg says 1 gigawatt of computing capacity will be up and running by the end of the year, and that Meta will deploy 1.3 million GPUs to do it. The CEO said it’s a massive effort that will drive the company’s core products and business, historic innovation and the expansion of U.S. technology leadership. Microsoft also plans to spend $80 billion this year to make its Azure cloud computing products, which are based on OpenAI models, available around the world. Elon Musk also plans to build massive data centers for his companies.

The stock market has also reacted to Zuck’s post: from a minus of 1.4% to a plus of 2%, Meta has outperformed its rivals…

Source: WCCFTech