Social media firm Meta Platforms (META) is making a huge investment in artificial intelligence, with CEO Mark Zuckerberg announcing plans to spend “hundreds of billions of dollars” to build powerful computing systems called superclusters. These massive AI data centers will be used to train and run advanced AI models, which will help Meta compete with companies like OpenAI and Google (GOOGL). Interestingly, Zuckerberg said that the first supercluster, called Prometheus, will go live in 2026, and another one, Hyperion, is expected to eventually scale up to 5 gigawatts.

He believes that these centers will give Meta more computing power per researcher than any other company. Zuckerberg shared these updates in posts on Facebook and Threads, while also pointing out that Meta can afford these investments thanks to its strong advertising business. In addition, the company raised its 2025 capital spending plans to between $64 billion and $72 billion in order to support this AI growth. The new AI tools and infrastructure are expected to support Meta products like the Meta AI app, image-to-video ad generators, and smart glasses.

It is worth mentioning that this AI push is being led by Meta’s new division called Meta Superintelligence Labs, which was formed in June after the firm struggled with its Llama 4 model. This has led Meta to bring in high-profile leaders like Alexandr Wang, the former CEO of Scale AI, and Nat Friedman, the former head of GitHub. Notably, Meta has already invested $14.3 billion in Scale AI and is now working to buy a minority stake in investment funds tied to Friedman and Daniel Gross. It is also spending heavily to poach top talent from competitors.

Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 41 Buys, four Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average META price target of $735.21 per share implies that shares are near fair value.

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