MENLO PARK / LONDON (IT BOLTWISE) – Meta, known for Facebook, is planning a massive investment in artificial intelligence to strengthen its market position. Despite a drop in profits due to a one-time tax payment, sales from advertising revenue remain strong. The investments are intended to significantly expand the data center infrastructure and bring Meta to the forefront of AI research.
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Meta, the company behind Facebook, has announced ambitious plans to expand its investments in artificial intelligence (AI). Investments of up to $72 billion are planned for the current year with the aim of becoming a leader in AI research. However, this announcement caused Meta shares to fall by twelve percent in New York trading.
Mark Zuckerberg, founder and CEO of Meta, emphasized in a conference call with analysts that the company plans to take the lead in computing power to meet the growing need for AI. The infrastructure of the data centers should therefore be expanded quickly. If the introduction of new AI technologies takes more time, the additional computing power could be used for other applications, such as improved recommendation systems.
Meta aims to compete against competitors such as OpenAI, Google and xAI, Elon Musk’s company. To achieve this goal, the group poached experts from other companies with above-average offers. The expansion of the data centers is being financed by the flourishing advertising business, which increased by 26 percent to $51.24 billion compared to the previous year.
Despite the sales growth, Meta suffered a significant decline in profits. Accounting changes related to the U.S. budget law led to a one-time tax payment of $15.93 billion, causing quarterly profit to fall to $2.7 billion, an 83 percent decline from a year earlier.
Meta continues to invest in innovative products such as AI glasses, which have so far proven to be loss-making. However, Zuckerberg is confident that these products will be profitable in the future. The investments in AI and the expansion of data centers are part of a long-term strategy to strengthen Meta’s market position and advance technological development.
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