Mark Zuckerberg declared that Meta will spend hundreds of billions of dollars on developing artificial intelligence products in the near future, and that it would build a near-sized data center in Manhattan.
The parent company of Facebook, Instagram and WhatsApp is one of the largest tech companies that have attacked high-profile deals, and in recent months, a multi-million-dollar wage package for AI researchers, $100 million more, can quickly work on machines that can represent humans in many tasks.
The first multi-gigawatt data center, called Prometheus, is expected to be online in 2026, while another, called Hyperion, could expand up to 5 gigawatts in the coming years, Zuckerberg said.
“We're also building multiple Titan clusters. Only one of these covers a key part of Manhattan's footprint,” the billionaire CEO said.
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He also pointed to a report from industry publisher Semianalysis that Meta was on track to become the first AI lab to implement the Gigawatt-Plus SuperCluster online.
Zuckerberg touted the strengths of the company's core advertising business to justify large spending amid investor concerns.
“We have capital from our business to do this,” he said.
The company, which generated nearly $165 billion in revenue last year, reorganized its AI efforts last month under a division called Superintelligence Labs after a setback in the open source Llama four models and key staff departures. There is no doubt that the department will generate new cash flows from meta AI apps, inter-image advertising tools and smart glasses.
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Da Davidson analyst Gil Luria said that the technology is actively investing in AI by allowing it to sell more ads and sell at a higher price.
Over the past few weeks, Zuckerberg has personally led the offensive talent attacks at Meta Superintelligence Labs, led by former scale AI CEO Alexandr Wang and former Github chief Nat Friedman after Meta invested $14.3 billion.
Meta aims to boost its 2025 capital expenditure forecast from $640 billion to $720 billion in April, strengthening the company's position on rivals Open Eye and Google.
