Meta Platforms intends to allocate between $60 billion and $65 billion this year to enhance its AI infrastructure, as stated by CEO Mark Zuckerberg on Friday. This move aligns with the growing trend among major tech companies to invest heavily in AI technology.

As part of this plan, Meta is set to construct a data center exceeding 2 gigawatts in capacity, which would be substantial enough to accommodate a large portion of Manhattan. The company is also one of Nvidia’s biggest clients, relying heavily on its sought-after AI chips, and aims to finish the year with over 1.3 million graphics processing units.

Zuckerberg remarked in a Facebook post, “This year will be pivotal for AI. It’s a significant endeavor, and in the years to come, it will propel our primary products and overall business.”

He anticipates that Meta’s AI assistant will be accessible across its platforms, including Facebook and Instagram, and will reach over 1 billion users by 2025. Additionally, he expects its open-source AI model, Llama 4, to become the leading example in the field.

The company’s shares saw a 1.6% increase in early trading.

Following the remarkable success of OpenAI’s ChatGPT, major tech firms have been pouring billions into developing AI-related infrastructure, showcasing the technology’s potential.

On Tuesday, U.S. President Donald Trump announced the formation of a venture called Stargate, which will include OpenAI, SoftBank Group, and Oracle, and will invest $500 billion in AI infrastructure throughout the U.S.

Earlier this month, Microsoft revealed plans to invest around $80 billion in fiscal 2025 to expand its data centers. Meanwhile, Amazon.com expects its capital expenditures for 2025 to exceed an estimated $75 billion slated for 2024.

Meta’s projected capital expenditure of up to $65 billion marks a significant increase compared to the estimated $38 billion to $40 billion it spent last year.

As part of its AI initiatives, the company plans to develop an AI engineer that will gradually contribute more code to its research and design projects. It will also continue to expand the teams focused on AI services.

Reporting by Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar