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Deepwater Asset Management Gene Munster say Meta Platform Inc. (Nasdaq:Goalthat) plans to invest up to $65 billion Your AI infrastructure will benefit this year Nvidia Corp. (Nasdaq:NVDA) and other hardware players.
What happened: CEO goal Mark Zuckerberg On Friday, they laid out the company’s capital spending plans for 2025 and focused on artificial intelligence (AI).
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Zuckerberg expects Meta to allocate between $60 billion and $65 million for capital spending, mostly aimed at expanding the company’s AI teams and building a new data center. He described the new data center as “so big it would cover a significant portion of Manhattan.” The Tech Mogul further noted that Meta aims to bring one gigawatt of computing power online by 2025 and is expected to end the year with more than 1.3 million GPUs.
Munster said Meta’s commitment “exceeds street estimates of $51 million.”
“By 2025, I expect the meta-AI to be the main helper to more than 1 billion people, LLAMA 4 will become the main model of the last generation, and we will build an AI engineer that will begin to contribute to the amount of code in our R & D efforts,” said Zuckerberg.
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According to Munster, increased investments in AI infrastructure will especially benefit Nvidia and other hardware players in the near term. In the long term, higher capital expenditure (CAPEX) is expected to accelerate AI’s flywheel, leading to more innovation, lower usage costs, increased customers and thus more investment.
He also issued a reminder, stating, “I think the market is going higher and the run will end in a spectacular bubble burst.”
Why does it matter?: Zuckerberg’s announcement comes on the heels of Meta’s recent AI advances. In December, Meta introduced the LLAMA 3.3 70B, a new AI model that outperforms competitors such as Alphabet Inc.‘s (Nasdaq:Google) (Nasdaq:Googo) Google, openaii Amazon.com, Inc. (Nasdaq:Amzn)). This model offers the performance of Meta’s largest LLAMA model, the LLAMA 3.1 405B, but at a reduced cost.
