Mark Zuckerberg says Meta plans to spend over $60 billion on AI as Silicon Valley panics over Chinese competition

Meta's AI Investment Plans - Meta plans to invest $60 billion to $65 billion in capital expenditure for AI in 2025, marking a significant increase in spending [1][2][5] - The company aims to bring online ~1GW of compute capacity and end 2025 with over 1.3 million GPUs [2] - Meta is significantly growing its AI teams and has the capital to continue investing in AI in the coming years [2] Meta's AI Infrastructure and Ambitions - Meta is building a 2 GW data center in Louisiana, which will be so large it could cover a significant part of Manhattan [1] - Meta AI is predicted to become "the leading assistant," serving over 1 billion users [1] - AI has had a positive impact on nearly all aspects of Meta's work, with new opportunities to accelerate its core business [3] Industry Context and Competition - Silicon Valley is reacting to news of DeepSeek, a Chinese company, developing an open-source AI model that outperformed some Meta, OpenAI, and Anthropic models in third-party benchmarks [3][5] - AI and China were major topics at the World Economic Forum in Davos, with Microsoft CEO Satya Nadella emphasizing the seriousness of developments in China [4] Market Reaction - Meta's stock dipped briefly after Zuckerberg's announcement but quickly recovered [2]