Tech
tech
Jon Keegan
1/24/25

Zuckerberg: Meta building city-sized AI data center, going on $65 billion spending spree

The future of AI will be measured in gigawatts, GPUs, and the square mileage of your data centers.

Today Meta CEO Mark Zuckerberg announced that the company will be going big on capital expenditures this year, planning to spend up to $65 billion in 2025.

According the map Zuckerberg shared, the data center would occupy approximately 4.3 square miles (about 120 million square feet), an area that would cover a “significant part of Manhattan.”

In addition to the Richland Parish, Louisiana, supersized data center, Zuckerberg said the company will be able to fill it with powerful hardware:

“We’ll bring online ~1GW of compute in ’25 and well end the year with more than 1.3 million GPUs.”

All of the Big Tech companies and AI startups have been in a bit of a measuring contest to see who has the largest number of powerful Nvidia GPUs, which are used for training and running AI services.

Zuckerberg teased the company’s upcoming Llama 4 AI model, saying he expected it would start contributing “increasing amounts of code to our R&D efforts.” Meta recently announced it would be laying off about 5% of its workforce, focused on the “lowest performers” in preparation for what Zuckerberg warned employees would be “an intense year.”

Meta’s massive capex outlay comes as the Trump administration is signaling to the AI industry that it wants the US to dominate the field and is throwing its support behind large AI infrastructure projects like the recently announced “Project Stargate” joint venture between Oracle, OpenAI, and SoftBank.

According the map Zuckerberg shared, the data center would occupy approximately 4.3 square miles (about 120 million square feet), an area that would cover a “significant part of Manhattan.”

In addition to the Richland Parish, Louisiana, supersized data center, Zuckerberg said the company will be able to fill it with powerful hardware:

“We’ll bring online ~1GW of compute in ’25 and well end the year with more than 1.3 million GPUs.”

All of the Big Tech companies and AI startups have been in a bit of a measuring contest to see who has the largest number of powerful Nvidia GPUs, which are used for training and running AI services.

Zuckerberg teased the company’s upcoming Llama 4 AI model, saying he expected it would start contributing “increasing amounts of code to our R&D efforts.” Meta recently announced it would be laying off about 5% of its workforce, focused on the “lowest performers” in preparation for what Zuckerberg warned employees would be “an intense year.”

Meta’s massive capex outlay comes as the Trump administration is signaling to the AI industry that it wants the US to dominate the field and is throwing its support behind large AI infrastructure projects like the recently announced “Project Stargate” joint venture between Oracle, OpenAI, and SoftBank.

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BofA doesn't expect Tesla's ride-share service to have an impact on Uber or Lyft this year

Analysts at Bank of America Global Research compared Tesla’s new Bay Area ride-sharing service with its rivals and found that, for now, it's not much competition for Uber and Lyft. “Tesla scale in SF is still small, and we don't expect impact on Uber/Lyft financial performance in '25,” they wrote.

Tesla is operating an unknown number of cars with drivers using supervised full-self driving in the Bay Area, and roughly 30 autonomous robotaxis in Austin. The company has allowed the public to download its Robotaxi app and join a waitlist but it hasn’t said how many people have been let in off that waitlist.

While the analysts found that Tesla ride shares are cheaper than traditional ride-share services like Uber and Lyft, the wait times are a lot longer (9 minute wait times on average, when cars were available at all) and the process has more friction. They also said the “nature of [a] Tesla FSD ‘driver’ is slightly more aggressive than a Waymo,” the Google-owned company that’s currently operating 800 vehicles in the Bay Area.

APPLE INTELLIGENCE

Apple AI was MIA at iPhone event

A year and a half into a bungled rollout of AI into Apple’s products, Apple Intelligence was barely mentioned at the “Awe Dropping” event.

tech
Jon Keegan
9/10/25

Oracle’s massive sales backlog is thanks to a $300 billion deal with OpenAI, WSJ reports

OpenAI has signed a massive deal to purchase $300 billion worth of cloud computing capacity from Oracle, according to a report from The Wall Street Journal.

The report notes that the five-year deal would be one of the largest cloud computing contracts ever signed, requiring 4.5 gigawatts of capacity.

The news is prompting shares to pare some of their massive gains, presumably because of concerns about counterparty and concentration risk.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Yesterday, Oracle shares skyrocketed as much as 30% in after-hours trading after the company forecast that it expects its cloud infrastructure business to see revenues climb to $144 billion by 2030.

Oracle shares were up as much as 43% on Wednesday.

It’s the second example in under a week of how much OpenAI’s cash burn and fundraising efforts are playing a starring role in the AI boom: the Financial Times reported that OpenAI is also the major new Broadcom customer that has placed $10 billion in orders.

Large companies have started to drop AI from their businesses

Census data shows drop in large companies using AI

AI appears to be everywhere, but that doesn’t mean big companies have fully embraced the use of the technology in their day-to-day business.

tech

Report: Microsoft adds Anthropic alongside OpenAI in Office 365, citing better performance

In a move that could test its fraught $13 billion partnership, Microsoft is moving away from relying solely on OpenAI to power its AI features in Office 365 and will now also include Anthropic’s Claude Sonnet 4 model, according to a report from The Information.

The move is a tectonic shift that boosts Anthropic’s standing, heightens risks for OpenAI, and has huge ramifications for the balance of power in the fast-moving AI field.

Per the report, Microsoft executives found that Anthropic’s AI outperformed OpenAI’s on tasks involving spreadsheets and generating PowerPoint slide decks, both crucial parts of Microsoft’s Office 365 productivity suite.

Microsoft will have to pay the competition to provide the services —Amazon Web Services currently hosts Anthropic’s models while Microsoft’s Azure cloud service does not, The Information reported.

OpenAI is also reportedly working on its own productivity suite of apps.

The move is a tectonic shift that boosts Anthropic’s standing, heightens risks for OpenAI, and has huge ramifications for the balance of power in the fast-moving AI field.

Per the report, Microsoft executives found that Anthropic’s AI outperformed OpenAI’s on tasks involving spreadsheets and generating PowerPoint slide decks, both crucial parts of Microsoft’s Office 365 productivity suite.

Microsoft will have to pay the competition to provide the services —Amazon Web Services currently hosts Anthropic’s models while Microsoft’s Azure cloud service does not, The Information reported.

OpenAI is also reportedly working on its own productivity suite of apps.

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