Company Plans to Spend Up to $600 Billion on U.S. Infrastructure Meta Accelerates Investments to Secure Computing Power for AI Model Development

Meta, the parent company of Facebook and Instagram, is facing mounting challenges in its quest to dominate the artificial intelligence sector, spending billions on building data centers and hiring AI experts, yet so far offering no clear product to justify such massive investments.

Reports indicate the company plans to invest up to $600 billion in U.S. infrastructure over the next three years, raising concerns among Wall Street investors, despite these figures being typical in Silicon Valley, according to TechCrunch.

The increase in operating expenses by about $7 billion and a jump in capital expenditures to roughly $20 billion led to a 12% drop in Meta's stock at Friday's close, resulting in a loss of over $200 billion in market value in just two days.

Reassuring Investors

CEO Mark Zuckerberg attempted to reassure investors, emphasizing that Meta is accelerating its investments to ensure the necessary computing power for developing new and unique AI models. However, he offered few details on future products, leaving investors anxious and uncertain.

Although Meta reported quarterly profits of $20 billion, analysts remain skeptical due to the lack of a core AI product generating tangible revenue, unlike companies such as Google and Nvidia, which have established AI-driven revenue streams.

Meta’s AI initiatives include the Meta AI assistant, which Zuckerberg claims has surpassed one billion users. Critics, however, argue this figure largely reflects Facebook and Instagram usage rather than the product’s success. The company also recently launched the Vanguard smart glasses under its Reality Labs division, seen more as a futuristic experiment than a market-ready product.

Promises of Innovative Products

Meta’s Superintelligence Lab is developing the next generation of AI models, promising innovative products soon. Yet details remain vague, leaving investors cautious in the short term.

Analysts note that Meta stands at a crossroads: either successfully convert these massive investments into an economically viable AI platform or face growing pressure from shareholders whose patience is running thin.