Latest news with #Mark Zuckerberg
The Guardian
3 days ago
- Business
- The Guardian
Zuckerberg says Meta will build data center the size of Manhattan in latest AI push
Mark Zuckerberg proclaimed that Meta would spend hundreds of billions of dollars on developing artificial intelligence products in the near future and, to that end, construct a data center planned to be nearly the size of Manhattan. The parent company of Facebook, Instagram and WhatsApp is among the large tech companies that have struck high-profile deals, and doled out multimillion-dollar pay packages to AI researchers in recent months – some as high as $100m – to fast-track work on machines that could outthink humans on many tasks, a concept known as 'super-intelligence' or 'artificial general intelligence'. Its first multi-gigawatt data center, dubbed Prometheus, is expected to come online in 2026, while another, called Hyperion, will be able to scale up to 5 gigawatts over the coming years, Zuckerberg said. 'We're building multiple more titan clusters as well. Just one of these covers a significant part of the footprint of Manhattan,' the billionaire CEO said. This article includes content provided by Facebook. We ask for your permission before anything is loaded, as they may be using cookies and other technologies. To view this content, click 'Allow and continue'. He also pointed to a report from industry publication SemiAnalysis that Meta was on track to be the first AI lab to bring a gigawatt-plus supercluster online. Zuckerberg touted the strength in the company's core advertising business to justify the massive spending amid investor concerns on whether the expenditure would pay off. 'We have the capital from our business to do this,' he said. The company, which generated nearly $165bn in revenue last year, reorganized its AI efforts last month under a division called Superintelligence Labs after setbacks for its open-source Llama 4 model and key staff departures. It is betting that the division will generate new cashflows from the Meta AI app, image-to-video ad tools and smart glasses. Sign up to TechScape A weekly dive in to how technology is shaping our lives after newsletter promotion DA Davidson analyst Gil Luria said Meta was investing aggressively in AI as the technology has already boosted its ad business by allowing it to sell more ads and at higher prices. In recent weeks, Zuckerberg has personally led an aggressive talent raid for the Meta Superintelligence Labs, which will be led by former Scale AI CEO Alexandr Wang and ex-GitHub chief Nat Friedman, after Meta invested $14.3bn in Scale. Meta had raised its 2025 capital expenditure predictions to between $64bn and $72bn in April, aiming to bolster the company's position against rivals OpenAI and Google.
Yahoo
4 days ago
- Business
- Yahoo
Meta Bets Big on AI With First Supercluster Coming Online in 2026
Meta (META, Financials) is diving headfirst into the AI arms race; on Monday, CEO Mark Zuckerberg announced that the company will invest hundreds of billions of dollars into AI computing infrastructurestarting with its first data supercluster, Prometheus, expected to go live in 2026. Warning! GuruFocus has detected 6 Warning Sign with META. The new AI compute hubdesigned to train and scale large language modelsis just the beginning. Zuckerberg says Meta is also building additional clusters, including one named Hyperion, which could scale up to five gigawatts over the next few years; for perspective, that's more power than some small countries consume. In a Facebook post, Zuckerberg said the company's Meta Superintelligence Labs would offer industry-leading levels of compute and by far the greatest compute per researcher; the goal is to attract top-tier AI talent and rebuild Meta's momentum after a sluggish reception to its Llama 4 model in April. Meta's AI pivot is fueled by urgency; Zuckerberg has reportedly grown frustrated with the pace of AI innovation inside the company. Since June, Meta has launched a full-blown hiring spreehighlighted by its $14 billion investment in Scale AIand is now focused on building the most elite, densely packed AI team in the industry. With OpenAI, Google, Amazon, and Microsoft all ramping up efforts in model development and infrastructure, Meta's bet on compute firepower is boldbut it might be exactly what it needs to catch up. This article first appeared on GuruFocus. Sign in to access your portfolio
Globe and Mail
5 days ago
- Business
- Globe and Mail
Privacy Failures at Center of Landmark Meta (META) Board Case
Mark Zuckerberg is poised to testify as lead witness in an $8 billion shareholder suit alleging he ran Facebook (META) as an unlawful enterprise that enabled widespread data harvesting without user consent. Shareholders of Meta Platforms (META) are suing Zuckerberg and other executives over violations of a 2012 FTC privacy agreement, seeking reimbursement for the record $5 billion fine and related costs stemming from the 2018 Cambridge Analytica scandal. Market Overview: Trial seeks to recoup $8 billion in fines from Zuckerberg, Sandberg and board members Defendants include Sheryl Sandberg, Marc Andreessen, Peter Thiel (PLTR) and Reed (NFLX) Hastings Non-jury case begins in Delaware Court of Chancery and spans eight days Key Points: Shareholders must prove directors breached their oversight duties under Delaware law Meta invested billions since 2019 in privacy safeguards amid ongoing AI scrutiny Plaintiffs allege Zuckerberg dumped stock for $1 billion profit ahead of scandal Looking Ahead: Watch for judge Kathaleen McCormick's rulings on oversight and reimbursement Assess implications for corporate governance and director liability standards Monitor Meta's continued investments in privacy and AI compliance efforts Bull Case: Meta's proactive investments in privacy safeguards and compliance since 2019 demonstrate a strong commitment to addressing past shortcomings, potentially strengthening its defense and reassuring regulators and investors. Mark Zuckerberg's testimony and the board's legal strategy could successfully argue that any stock sales were pre-arranged under compliance plans, mitigating allegations of insider trading and undermining the plaintiffs' case. The trial could set a precedent that clarifies director oversight duties without imposing overly punitive standards, offering Meta and other tech firms greater clarity and confidence in managing governance risks. Continued investments in privacy and AI compliance may help Meta rebuild trust with users, regulators, and partners, supporting long-term platform growth and competitive positioning. If the court finds that directors did not knowingly breach their duties, Meta could avoid significant financial penalties, preserve cash for innovation, and maintain strategic flexibility in a rapidly evolving digital landscape. A favorable outcome could reinforce Meta's board structure and governance practices, attracting institutional investors seeking strong oversight and risk management. Bear Case: The $8 billion shareholder suit exposes Meta and its leadership to significant financial and reputational risk, with potential for costly penalties and stricter future oversight if the court rules against the company. Allegations that Zuckerberg and other executives breached their oversight duties and profited from pre-scandal stock sales could erode investor confidence and trigger further legal or regulatory action. Renewed scrutiny of Meta's privacy practices—especially as it trains AI models on user data—may fuel ongoing public and political backlash, threatening user trust and platform engagement. A ruling that raises the bar for director liability could have far-reaching implications for corporate governance, making it harder for Meta and other tech companies to attract and retain top board talent. Even if Meta prevails, the trial may distract management, consume resources, and keep privacy concerns in the headlines, weighing on the stock and complicating strategic initiatives. Negative outcomes or damaging disclosures during the trial could embolden additional lawsuits or regulatory probes, compounding legal risks and operational uncertainty. While the trial revisits decade-old policies and board meetings, it unfolds amid renewed privacy concerns as Meta trains AI models on user data. Investors will watch closely as plaintiffs attempt the rare feat of proving directors knowingly violated the law, and as defendants argue Zuckerberg's stock trades were pre-arranged under a compliance plan.
Yahoo
6 days ago
- Business
- Yahoo
Meta strengthens portfolio with PlayAI acquisition
Facebook-parent Meta Platforms has reportedly acquired PlayAI, a startup specialising in AI-powered voice technology. The PlayAI team is scheduled to integrate into Meta week commencing 13 July 2025, Bloomberg reported citing an internal memo. They will report to Johan Schalkwyk, who joined Meta from another voice AI startup Sesame AI. Financial details of the acquisition were not divulged. However, a Meta spokesperson confirmed the deal to the publication without providing further details. PlayAI's AI Agent platform is designed to create conversational agents capable of understanding and responding to user inputs in a natural manner. The platform combines advanced language models with high-quality text-to-speech technology to facilitate human-like interactions. According to the internal memo, PlayAI's expertise in natural voice creation aligns well with Meta's objectives in AI Characters, Meta AI, Wearables, and audio content creation. The acquisition is also aligned with Meta's broader strategy to prioritise AI. The company is investing significantly in infrastructure, including chips and data centres, and is actively recruiting talent to develop AI models and features. Recently, Meta CEO Mark Zuckerberg, announced a restructuring of the company's AI division. The new unit, called Meta Superintelligence Labs led by former Scale AI CEO Alexandr Wang, will work to accelerate the development of artificial general intelligence and enhance Meta's revenue through AI applications, image-to-video advertising, and smart glasses. Meta also invested around €3bn ($3.5bn) earlier in July 2025 to acquire a nearly 3% stake in EssilorLuxottica, the eyewear manufacturer known for the Ray-Ban brand. The investment strengthened the ongoing collaboration between Meta and EssilorLuxottica on AI-enabled smart glasses. "Meta strengthens portfolio with PlayAI acquisition" was originally created and published by Verdict, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
