Meta's Bold AI Ambitions: A New Era in Social Media

Meta has announced a significant increase in capital expenditure to bolster its AI infrastructure, aiming for superintelligence. The firm, parent to Facebook and Instagram, is reducing staff in its Reality Labs segment while expanding AI and energy infrastructure, striving to lead in Silicon Valley's tech race.

Meta announced on Wednesday that it anticipates a sharp rise in its annual capital expenditure as it bolsters its artificial intelligence infrastructure, aiming for the milestone of superintelligence. The social media giant's annual capital spending is expected to reach between $115 billion and $135 billion, a substantial increase from $72.22 billion last year.

The company's advertising platform remains its primary growth engine, aiding advertisers in automating and customizing their campaigns. As Meta invests heavily in AI infrastructure to achieve superintelligence, it is also laying off about 10% of employees within its Reality Labs division to redirect resources from some metaverse projects to wearable technology.

Meta is constructing several large-scale data centers in the U.S., including a significant project in rural Louisiana. The initiative positions Meta as a leading corporate buyer of nuclear energy, facilitated by partnerships with companies like Vistra, Oklo, and TerraPower. The tech giant continues to court strategic alliances as it competes vigorously in Silicon Valley's AI race.

(With inputs from agencies.)