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Meta Platforms (NASDAQ: META) is significantly investing in AI technology, with plans to build a $50 billion data center in Louisiana and offering up to $1 billion in total compensation to top AI talent. This follows a previous report on August 20, 2023, suggesting a recruitment freeze, which was quickly rebutted by Chief AI Officer Alexandr Wang.
Despite concerns regarding an “AI bubble,” Meta’s investments in AI infrastructure and personnel are expected to contribute to long-term revenue growth. Analysts predict that Meta’s earnings per share (EPS) will grow from $23.86 to $28 by 2025, but only rise by 6.8% in 2026, indicating slowing growth in the near term.
The company aims to fully automate advertising on its platforms by late 2026 and is exploring monetization options beyond advertising, including a licensing deal with AI image generation start-up Midjourney. Meta anticipates generating substantial revenue from AI by the 2030s, with the potential for a market re-rating based on future AI software contributions.
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