Meta's Mark Zuckerberg defends $65bn AI spend after DeepSeek rise

Published On Jan 29, 2025, 7:18 PM

Meta's CEO Mark Zuckerberg defended the company's substantial $65 billion investment in artificial intelligence, stating that recent developments, including the rise of the Chinese AI app DeepSeek, reinforce their strategy. Despite a dip in US tech stocks due to DeepSeek's emergence, Meta's stock increased after unexpectedly strong financial results. Zuckerberg emphasized the importance of Meta's open-source AI approach and stated that investing heavily in AI infrastructure would provide a competitive advantage. The company also addressed plans to revitalize the Facebook platform amidst competition from apps like Instagram and TikTok.

Stock Forecasts

META

Positive

Meta's commitment to open-source AI and the substantial spending could position them well in this emerging sector, especially as global competition intensifies. Their recent positive financial results, coupled with a strategic pivot towards AI, suggest a solid foundation for growth.

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Meta announced fourth quarter earnings on Wednesday that beat expectations, while its outlook for the year ahead showed continued investments around AI.

Meta announced fourth quarter earnings on Wednesday that beat expectations, while its outlook for the year ahead showed continued investments around AI.