ALERT: Zuck Makes It Rain $65 Billion on AI, But With His History, Is It Set to Fail?

Mark Zuckerberg is back on his “spend now, justify later” grind, and this time the man has a $65 billion receipt to prove it. Meta announced plans to drop a cool $60 to $65 billion on capital expenditures in 2025, a number so absurd even Wall Street had to pause and say, “Wait, what?” But because Zuck managed to sprinkle in the magic letters A and I, investors are eating it up like it’s a Costco hot dog + Coke combo (see what I did there?). As a result, shares popped —presumably because fiscal responsibility is for losers when you’ve got Nvidia GPUs to buy. 

(Source: Giphy) 

In short, Meta’s going all-in on AI, because, let’s face it, the metaverse was a dumpster fire. Zuck’s pivoting hard, throwing billions at data centers that will power the next generation of AI products across Facebook, Instagram, WhatsApp, and whatever other apps you’re doom-scrolling at 2 a.m. By year-end, Meta expects to own 1.3 million GPUs—enough raw computing power to make OpenAI blush and Nvidia’s accountants weep tears of joy.

It’s also probably a weird coincidence that the capex bombshell comes just days after OpenAI and its pals announced Stargate, their own $500 billion AI infrastructure power move. Meaning it seems that Meta’s spending spree is less about innovation and more about keeping up with the Joneses in the Magnificent Seven. 

(Source: Reuters) 

Naturally, analysts had pegged Meta to spend a mere $51 billion on capex, proving once again that forecasting Zuck’s budget is like trying to predict the weather in Oklahoma: good luck. And while most CEOs would catch heat for budgeting this poorly, Zuck somehow gets a standing ovation. Why? Because AI is still AI, and no one wants to be the guy betting against it. Remember when people said the same thing about crypto? Yeah, good times.

Of course, this isn’t Meta’s first time with massive expenditures. The company already took a $4.3 billion restructuring hit in 2023 to retool its data centers for AI, and Zuck has been pounding the table about AI’s potential ever since. The difference now is that he’s doubling down—hard. Meta’s new data centers are so massive that one in Richland Parish, Louisiana, will reportedly span more than four million square feet. Zuck even joked it could “cover a significant part of Manhattan” in a Facebook post.

(Source: New York Times) 

But, but, but… this move has shades of Zuck’s greatest hits: Oculus headsets that no one asked for, Libra (utter failure), and Horizon Worlds, where user engagement is worse than a corporate all-hands meeting. Investors might be hyped now, but Meta’s track record of lighting money on fire isn’t exactly inspiring confidence. The guy’s basically the Michael Bay of tech: big budgets, questionable results, but hey, at least it’s entertaining.

On the other hand though, you definitely have to give Zuck credit for swinging for the fences. Silicon Valley is in an arms race for AI dominance, and Meta’s not about to get left in the dust. Whether this $65 billion bet pays off or becomes another chapter in Meta’s “What Were They Thinking?” scrapbook is anyone’s guess. But for now, Zuck’s message is clear: If you’re not spending obscene amounts of money on AI, are you even trying?

(Source: Giphy) 

Meaning for now, definitely keep an eye on Meta going forward. The investor sentiment is clearly confident in the move—but as time goes on, and the lighting money on fire becomes a reality, it could take a turn for the worst. So with that, place your bets accordingly—and as always, stay safe and stay frosty! Until next time…

UPDATE: It did take a turn for the worst. Deepseek (China's answer to OpenAI) has officially put the nail in the coffin of America's sky high AI hype and valuations. Oh how the tables have turned.  

P.S. Our recent $DWTX alert skyrocketed 876% in less than ONE-DAY! Click here to join Stocks.News to make sure you take advantage of our next alert…

Stocks.News holds positions in Meta as mentioned in the article.