Remember Meta CEO Mark Zuckerberg’s infamous corporate belt-tightening of 2022 and 2023 when he preached “efficiency” and cut thousands of jobs? These days, it’s just a memory, as the company is currently on an AI spending spree. Wall Street seems just fine with that—at least for now—as Meta beat its Q2 earnings expectations with strong digital ad revenue, and the company’s stock is up about 4% today.
Meta’s eye-popping AI spending is mostly going towards the infrastructure that supports training and running AI models—such as servers, data centers, and a reported 600,000 Nvidia GPUs (which each cost roughly $30,000 each). It all adds up to the tune of $37 billion to $40 billion in expected 2024 capital expenditures, while the company said infrastructure spending “will be a significant driver of expense growth next year” as well.
