Facebook parent Meta Platforms (META-2.41%     ) has invested billions of dollars  into artificial intelligence  as it looks to keep pace  with its Ma

Meta's big AI spending will only get bigger

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2024-10-31 14:30:06

Facebook parent Meta Platforms (META-2.41% ) has invested billions of dollars into artificial intelligence as it looks to keep pace with its Magnificent 7 competitors. The tech giant warned that this spending will only grow into next year and beyond.

In its third-quarter earnings report Wednesday, Meta raised capital expenditure estimates for the 2024 fiscal year to between $38 billion and $40 billion, from $37 billion to $40 billion previously. The company said it expects “significant capital expenditures growth in 2025” and “significant acceleration in infrastructure expense growth next year.”

Chief executive Mark Zuckerberg gave analysts a hint of what some of those investments could look like on a call Wednesday, but said the company would offer more details once it finalizes its budget in the fourth quarter.

“First, it’s clear that there are a lot of new opportunities to use new AI advances to accelerate our core business that should have strong ROI over the next few years,” Zuckerberg said. “So, I think we should invest more there.”

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