Meta Platforms is dramatically scaling up its artificial intelligence ambitions, announcing plans to spend $60-65 billion in capital expenditures for 2025 - a stunning 70% increase from previous guidance. This aggressive investment plan, focused heavily on AI infrastructure, comes as the company aims to establish itself as a leader in the increasingly competitive AI landscape.
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile appKey Points:
-
Capital expenditure guidance raised to $60-65B for 2025 (vs. $38-40B in 2024)
-
Plans for massive new data center with 2+ gigawatt capacity
-
Targeting 1.3 million GPUs by end of 2025
-
AI assistant aimed at serving over 1 billion users
-
Analysts estimate $22.5-33B could be allocated to GPU purchases
Infrastructure Expansion
Meta's ambitious plan centers around constructing a massive new data center that CEO Mark Zuckerberg says could "cover a significant part of Manhattan." The facility will bring approximately 1 gigawatt of computing power online in 2025, supporting the company's goal of reaching over 1.3 million GPUs by year-end.
Strategic AI Focus
The investment surge reflects Meta's determination to advance multiple AI initiatives, including:
-
Developing Meta AI to become "the leading assistant" serving over 1 billion users
-
Launching Llama 4 model, which they expect to achieve state-of-the-art performance
-
Creating an AI engineer capability to enhance code development
-
Significantly expanding AI teams despite broader company restructuring
Market Response
While the spending increase surprised analysts who had projected $51.4B in 2025 CapEx vs. $38-40B in 2024, market reaction has been largely positive. Meta shares rose modestly to ATH (+1.3%) following the announcement, suggesting investors support the company's aggressive AI strategy.
Industry Context
Meta's announcement comes shortly after the Stargate initiative - a $500B AI infrastructure project involving OpenAI, Oracle, and SoftBank. This intensifying race for AI dominance has tech giants dramatically scaling up their infrastructure investments, though Zuckerberg acknowledged last summer that companies might be collectively overbuilding in the sector.
With this unprecedented capital commitment and clear strategic focus on AI development, Meta appears positioned to compete aggressively in the evolving AI landscape, leveraging its massive user base and technical capabilities to drive innovation and maintain its competitive edge.
META.US (D1 Interval)
With Meta stock trading at an all-time high (ATH), bears will aim for a retest of previous highs at $632.5. If this level is breached, the stock might revisit the 30-day SMA, with strong support at the 50-day SMA at $599.54, which has served as robust support throughout the past month in the uptrend.
The RSI is gradually approaching the oversold zone while exhibiting strong bullish divergence, signaling potential strength. Additionally, the MACD has shown a clear bullish signal, further reinforcing the possibility of continued upward momentum. Source: xStation
The content of this report has been created by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, (KRS number 0000217580) and supervised by Polish Supervision Authority ( No. DDM-M-4021-57-1/2005). This material is a marketing communication within the meaning of Art. 24 (3) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (MiFID II). Marketing communication is not an investment recommendation or information recommending or suggesting an investment strategy within the meaning of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC and Commission Delegated Regulation (EU) 2016/958 of 9 March 2016 supplementing Regulation (EU) No 596/2014 of the European Parliament and of the Council with regard to regulatory technical standards for the technical arrangements for objective presentation of investment recommendations or other information recommending or suggesting an investment strategy and for disclosure of particular interests or indications of conflicts of interest or any other advice, including in the area of investment advisory, within the meaning of the Trading in Financial Instruments Act of 29 July 2005 (i.e. Journal of Laws 2019, item 875, as amended). The marketing communication is prepared with the highest diligence, objectivity, presents the facts known to the author on the date of preparation and is devoid of any evaluation elements. The marketing communication is prepared without considering the client’s needs, his individual financial situation and does not present any investment strategy in any way. The marketing communication does not constitute an offer of sale, offering, subscription, invitation to purchase, advertisement or promotion of any financial instruments. XTB S.A. is not liable for any client’s actions or omissions, in particular for the acquisition or disposal of financial instruments, undertaken on the basis of the information contained in this marketing communication. In the event that the marketing communication contains any information about any results regarding the financial instruments indicated therein, these do not constitute any guarantee or forecast regarding the future results.
