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MENLO PARK, California: Meta Platforms, led by CEO Mark Zuckerberg, is poised to make a major leap in artificial intelligence, with plans to invest as much as US$65 billion in 2025.

The hefty budget reflects the company’s ambition to outpace competitors OpenAI and Google in the increasingly competitive AI landscape.

As part of its strategy, Meta will increase hiring for AI-focused roles and build a massive 2-gigawatt data center, equivalent in size to a significant portion of Manhattan. The company, already one of Nvidia’s top customers for its sought-after AI chips, plans to scale its infrastructure to include over 1.3 million graphics processors by year-end. Additionally, it aims to bring about 1 GW of computing power online in 2025.

“This will be a defining year for AI,” Zuckerberg said in a Facebook post. “This massive effort will drive our core products and business for years to come.”

Meta’s announcement comes amid a surge in AI investments across the tech sector. Earlier this month, Microsoft revealed plans to invest $80 billion in data centers for fiscal 2025, while Amazon’s spending for 2025 is expected to exceed $75 billion. Adding to the momentum, a new venture called Stargate, backed by OpenAI, SoftBank, and Oracle, pledged $500 billion toward U.S. AI infrastructure.

“Zuckerberg is signaling that Meta is determined not to fall behind in the AI race,” said D.A. Davidson analyst Gil Luria. The timing of Meta’s announcement likely reflects competitive pressure from the Stargate venture.

Meta’s investment underscores its unique approach in the AI space, including open-source Llama AI models that allow businesses and consumers free access. The company’s AI-powered assistant, integrated across its platforms, is projected to serve over one billion people by 2025, up from 600 million monthly users last year.

The planned $60 to $65 billion in capital spending marks a sharp rise from Meta’s estimated $38 to $40 billion last year, and far exceeds analysts’ forecasts of $50.25 billion for 2025. Meta is set to report its fourth-quarter earnings on January 29.