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Elevate Magazine
January 30, 2025

Meta to Spend Billions on AI Despite Market Jitters

meta to spend billions on ai despite market jitters
Photo source: LinkedIn

Mark Zuckerberg, CEO of Meta, remains undeterred by the potential threat posed by DeepSeek’s AI models, which have sparked concerns about the demand for GPUs and led to a significant drop in Nvidia’s stock.

During Meta’s first-quarter earnings call, Zuckerberg committed to a substantial investment in artificial intelligence, stating that the company would allocate “very heavily” in AI, potentially amounting to “hundreds of billions of dollars” over the long term.

Zuckerberg had previously announced that Meta plans to spend over $60 billion in 2025 on capital expenditures, primarily focused on expanding its data centres. In response to an analyst’s inquiry about DeepSeek’s influence on Meta’s AI spending, Zuckerberg emphasised that investing heavily in AI infrastructure would continue to be a “strategic advantage” for Meta. 

The company views DeepSeek as a new competitor and is studying its approach, but Zuckerberg noted that it is way too early to determine if the demand for chips will decline, as they remain essential for inference purposes. He highlighted that Meta serves billions of users.

“At this point, I would bet that the ability to build out that kind of infrastructure is going to be a major advantage for both the quality of the service and being able to serve the scale that we want to,” Zuckerberg said.

Meta aims for its upcoming model, Llama 4, to become the most competitive globally, even when compared to closed models like ChatGPT. Zuckerberg mentioned that Llama 4 is expected to possess agentic capabilities, an area where OpenAI and Anthropic have also ventured, alongside multimodal capabilities.