From Nasdaq: 2025-02-08 11:00:00

Businesses are increasingly investing in AI, with a focus on graphics processing units for training large language models. Despite expectations of a peak, Meta Platforms announced a $65 billion capex plan for AI infrastructure in 2025, representing over 60% growth from last year.

Meta’s capex plan will mainly focus on servers, data centers, and networking equipment to enhance its AI capabilities. The company aims to double down on data center build-outs with custom chips designed with Broadcom, signaling a significant investment in AI infrastructure.

Previously known as Facebook, Meta invested heavily in the metaverse, leading to increased capex and decreased profitability. However, this time, Meta’s AI spending differs as it focuses on extending server life, potentially yielding a better return on investment in the long run.

Investors may want to monitor Meta’s financial performance closely to gauge the impact of its AI investments on sales, profits, and cash flow. As the company continues its push into AI, staying informed through earnings announcements and management commentary is crucial for potential investors.



Read more at Nasdaq: Is Meta’s $65 Billion Spending Spree a Good Idea? Here’s What History Suggests.