Meta’s AI spending has raised eyebrows

By Brian Sitnamy

Since the beginning of 2025, Meta’s aggressive AI spending raises much more attention.

In Q1, Meta upped its full-year capital expenditures outlook to between $64B and $72B from between $60B and $65B, which reflects more data center investments in AI and potentially higher hardware costs.

Zuckerberg later announced the creation of Meta Superintelligence Labs. And Meta’s CEO said last week that he plans to invest “hundreds of billions of dollars” into AI compute infrastructure, with plans to bring its first supercluster online next year.

Meanwhile the recent talent hires are notable, Meta brought on former GitHub CEO Nat Friedman and his investing partner Daniel Gross, who had been CEO of AI startup Safe Superintelligence.

Meta is expected to report revenue growth of 14.5% for Q2, which would be the slowest growth rate since mid-2023, and Wall Street projects deceleration over the next two quarters.

To be honest, Meta is under some sort of pressure to show results of the aggressive investments, or at least offer a clear strategy that investors can support. Some analysts hope to see meaningful improvements in models and user-facing applications — the road to platform leadership in AI remains long and highly competitive, also some analysts suspect that Meta needs to make a case for strong AI returns to drive multiple expansion for the foreseeable future.

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