This Week, a New AI Platform, DeepSeek, Emerged, Leaving Many Tech Sector Brands Concerned. Now, Mark Zuckerberg Has Shared His Thoughts on This New Competitor.
According to a report by consulting firm McKinsey, the global AI market could reach a value of $1.8 trillion by 2030, with a compound annual growth rate (CAGR) of around 37%. This expansion is being driven by process automation, customer experience optimization, and improvements in business decision-making.
What Did Zuckerberg Say About DeepSeek?
Recently, DeepSeek stated that its models match or surpass its main American rivals at a fraction of the cost, including Meta’s own Llama models, challenging the prevailing belief that scaling AI requires vast computing power and investment.
In response, Mark Zuckerberg said it was too early to determine how DeepSeek’s global rise would impact Meta’s investment strategy and capital expenditures. However, he acknowledged the lessons the new company could bring to Meta’s products. “There are a number of advancements that we hope to implement in our systems,” Zuckerberg said when asked about DeepSeek.
This comes as Meta Platforms’ fourth-quarter earnings exceeded Wall Street expectations on Wednesday. However, the company forecasted that first-quarter sales might not meet projections, sending mixed signals about how its costly AI-powered tools are paying off.
Meta, the parent company of Facebook and Instagram, revealed that it expects first-quarter revenue between $39.5 billion and $41.8 billion, compared to analysts’ average estimate of $41.72 billion, according to data compiled by LSEG.
Additionally, Meta’s stock remained stable after the market closed but later rose when CEO Mark Zuckerberg spoke optimistically about Meta’s AI initiatives and the company’s conviction that open-source AI is the right strategy—especially after a Chinese company launched the open-source AI DeepSeek, which shook global markets.
“There will be a global open-source standard,” Zuckerberg said in a conference call. “It is important that it is an American standard.”
Last week, Zuckerberg announced that Meta plans to spend up to $65 billion in capital expenditures in 2025 to expand its AI infrastructure while increasing hiring for AI-related roles. On Wednesday, Meta stated that it expects total expenses for 2025 to be in the range of $114 billion to $119 billion, up from a total of $95 billion in 2024.
“Meta’s spectacular fourth-quarter results clearly demonstrate that advertising revenue remains the company’s lifeblood. That said, the biggest question heading into 2025 is not about today’s earnings but whether Mark Zuckerberg’s $60-65 billion bet on AI infrastructure will pay off,” said Jeremy Goldman, principal analyst at eMarketer.
It is also worth noting that Meta, one of the largest buyers of Nvidia’s coveted AI chips, aims to end the year with more than 1.3 million graphics processing units (GPUs) and bring online around 1 gigawatt of computing power, Zuckerberg said Friday in a Facebook post outlining the company’s 2025 spending goals.
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