Meta Ramps Up AI Spending—Again
When it comes to artificial intelligence, Mark Zuckerberg is not holding back. Meta Platforms revealed Wednesday it was raising its projected capital spending for this year to as high as $72 billion, from a previous high of $65 billion outlined in January. If Meta spent at the upper level of its new projection, its capital outlays this year would be 84% above what it spent last year. It would also be very close to what Google is spending this year, even though Google is a much bigger company by revenues.
Zuckerberg, Meta’s CEO, isn’t going hog wild on AI this year because Meta’s business is growing faster than it expected a few months ago. In fact, the company’s second-quarter guidance implies a slowdown by several percentage points, from what was a robust first quarter, when taking into account the impact of foreign exchange volatility on reported revenues. (Find more details on the first quarter here.) No, Zuckerberg said Meta was speeding up its spending simply to get computing capacity online faster.
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