Zuckerberg's ‘mercenary' AI binge is paying off on Wall Street
's gigantic
AI
spending is being handsomely rewarded by investors. The stock soared after its latest earnings beat and is now up 30 per cent in 2025, pushing Meta's market value close to $2 trillion.
After being punished for
Mark Zuckerberg
's extravagant bet on the metaverse – remember that? – investors are showing a more forgiving streak, perhaps because AI's pay-off looks more tangible.
Meta is expected to spend up to $72 billion on AI infrastructure this year. Next year's bill may top $100 billion. Some engineers reportedly command salaries of more than $100 million, underscoring the scale of Meta's ambitions.
Such lavish outlays have raised eyebrows – OpenAI's Sam Altman called Meta's conduct 'distasteful', telling staff that 'missionaries will beat mercenaries'.
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Not that Zuckerberg is averse to missionary talk himself. He describes AI as a path to 'personal superintelligence' that will help users 'experience any adventure, be a better friend' and 'become the person you aspire to be' – presumably after clicking a few more ads.
It's the ads investors care about. AI is seemingly juicing Meta's core business, driving user engagement and ad revenue through smarter targeting and tools.
This enthusiasm isn't limited to Meta. Google and Microsoft shares have also rallied, as markets reward big AI bets. Sceptics see froth, but while Meta shares are up nearly 50 per cent year on year, the valuation – 27.5 times estimated earnings – remains relatively grounded.
The rally looks driven more by fundamentals than hype. Memories of the metaverse linger, but this time, investors believe Zuckerberg's spending will deliver.
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