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Meta increases infrastructure investment in AI

Facebook-AI
Translate from : Meta øger infrastrukturinvesteringer i AI
Mark Zuckerberg says that Meta should invest significantly more in AI in the coming years. Meta plans to increase infrastructure investment to support AI.
By Maria
26 apr. 2024 09:05 am
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Mark Zuckerberg, CEO of Meta, formerly known as Facebook, has said that the company "should invest significantly more in the coming years" in artificial intelligence (AI). He made the announcement as Meta announced plans to spend billions of dollars more on servers and data centers to support the company's AI efforts.

Shares in the company fell on concerns over the increased costs, but Mark Zuckerberg argued that these investments were essential to becoming " the world's leading AI company." Meta expects to increase its capital expenditures this year to a level between $35 billion and $40 billion, which would make it Meta's largest investment ever.

Meta's CFO, Susan Li, said in an earnings call that "capital expenditures including finance lease repayments were $6.7 billion, driven by investments in servers, data centers and network infrastructure," down from $7.09 billion at the same time last year. "We expect capital expenditures to continue to increase next year as we aggressively invest to support our ambitious AI research and product development efforts," Li added.

Mark Zuckerberg added: "We should invest significantly more in the coming years to build even more advanced models and the most comprehensive AI services in the world." However, he admitted that building the leading AI will take several years. However, he also pointed out that Meta has a strong business model when it comes to monetizing AI services.

However, Meta's investment plans were not met with enthusiasm from investors. The company's shares fell by approx. 15 percent, shedding $200 billion on the company's value. This decline in valuation came despite the company's earnings per share and revenue both exceeding expectations.

However, Meta predicted sales growth below expectations in the second quarter. In his statement, Mark Zuckerberg also emphasized the importance of energy to build larger data centers for AI. He said the company would build even larger clusters of data centers if they could get the energy to do so.

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