AI News Monitor

Meta and Mark Zuckerberg have hundreds of billions riding on AI success.

Meta’s company value is increasing. This valuation is indicated by the tech giant’s stock price rising for 20 trading days in a row. This streak is the company’s longest winning streak in its history. And much of it is due to the confidence of investors in its AI investments.

Meta has been involved in heavy spending for AI development. In January, the big tech company announced plans to invest up to $65 billion on AI infrastructure. This will include a massive data complex in Louisiana projected to be about half the size of Manhattan. “This is a massive effort,” says CEO Mark Zuckerberg, “and over the coming years it will drive our core products and business.”

AI plays an important role in the company’s main revenue generation. It is used to improve ad targeting on Facebook and Instagram. Ads on both platforms generate over 90% of Meta’s annual revenue.

The company also has faith in Meta AI, its AI chatbot which already sees up to 700 million active users monthly. Zuckerberg announced that he expects Meta AI to become “the leading assistant serving more than one billion people” in 2025.

Additionally, Zuckerberg touted Llama 4—yet to be released—as a product that would become the leading state-of-the-art AI agent. This came after OpenAI released its own AI agent, named Operator. Like other Llama models developed by Meta, Llama 4 is expected to be open source.

Meta has also committed to becoming the first customer of British semiconductor designer, Arm. The Softbank-owned group is building strong competition against the largest chip provider in the world, Nvidia. The bigwig behind it, Masayoshi Son, wants to build a vast network of AI infrastructure. He has already committed to heavy investment in the US Stargate initiative. Meta’s involvement with Arm at this stage shows its desire to secure early buyer advantage that can make it more competitive.

However, for Meta and Mark Zuckerberg, a lot is hinging on AI success. The company is making a bit bet on a future of AI-powered products, but it is not a strategy without risk. If Meta’s investments do not yield expected results, it could bring a sharp decline to the company value that has ballooned over the past year.

There are concerns that the company is over-reliant on its advertisement revenue, which it is using to fund its AI ventures. In the future, it would need to justify its multi-billion-dollar investment to shareholders.

Investors naturally expect assurance that the company will reap significant rewards on investment. The daily gains on Meta stock shows that confidence is still high—for now.