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Meta Platforms’ Major AI Infrastructure Investment
Meta Platforms (NASDAQ: META) plans to invest between $66 billion and $72 billion in AI infrastructure by 2025, aiming to create one of the world’s most powerful AI frameworks. The company’s project includes significant installations such as the Hyperion in Louisiana, expected to scale to 5 gigawatts and cover an area nearly the size of Manhattan.
Financial Performance and Talent Acquisition
In Q2 2025, Meta reported a revenue increase of 22% to $47.5 billion, alongside free cash flow of $8.5 billion. Despite recent turbulence in talent retention, the company has hired leading researchers from Alphabet, OpenAI, and Apple, establishing the Meta Superintelligence Labs to focus on artificial general intelligence.
Valuation Discrepancy
Currently trading at 25.4 times forward earnings, Meta is valued significantly lower than Nvidia, which trades at 38 times forward earnings, despite Meta’s extensive plans and capabilities in AI development. This gap presents a potential opportunity for investors, as Meta’s existing strong core business provides stable support while pursuing innovative AI breakthroughs.
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