Meta Platforms Inc. announced it will increase its capital expenditure to as much as $72 billion in 2025, driven by the escalating demand for artificial intelligence infrastructure. This updated spending guidance surpasses the company’s earlier outlook of $64 billion to $72 billion and reflects rising costs related to expanding its data centers, compute capacity, and associated operating expenses. The announcement accompanied Meta’s strong second-quarter earnings report, which showed a 22% year-over-year revenue increase to $47.52 billion.
The growth was propelled by heightened advertising activity, with ad impressions climbing 11% and the average price per ad rising 9%. Daily user engagement remained robust, with 3.48 billion people using at least one Meta app daily in June, marking a 6% increase from the previous year. CEO Mark Zuckerberg emphasized the company’s long-term commitment to artificial intelligence, expressing excitement about building “personal superintelligence for everyone in the world.”
Meta also projected total expenses for 2025 between $114 billion and $118 billion, slightly narrowing previous estimates. However, the company cautioned that 2026 expenses could grow faster due to continued infrastructure buildout and increased employee compensation. As of June 30, Meta’s workforce grew 7% year-over-year to 75,945 employees, focusing heavily on AI and systems engineering talent.
Despite heavy investment, Meta maintains a strong financial position, supported by healthy cash flow and reserves. It returned nearly $11 billion to shareholders in the quarter through stock buybacks and dividends. Looking ahead, Meta expects third-quarter revenue to range from $47.5 billion to $50.5 billion but anticipates slower growth in the fourth quarter. The company also highlighted regulatory challenges in Europe, where its Less Personalized Ads model faces scrutiny under the Digital Markets Act, potentially impacting revenues and user experience.
Source: Business day