logo
Meta to spend billions building gigawatt-size data centers for AI

Meta to spend billions building gigawatt-size data centers for AI

Japan Times18 hours ago
Meta Platforms CEO Mark Zuckerberg has said the company is building several massive data centers to power its artificial intelligence efforts, with the first one expected to come online next year.
"We're calling the first one Prometheus and it's coming online in '26' Zuckerberg wrote Monday in a post on his social platform Threads, referring to a project in Ohio. "We're building multiple more titan clusters as well,' he added, a nod to other planned data center complexes.
Frustrated by the quality of Meta's past AI efforts, Zuckerberg has been investing heavily in the energy, computing power and talent needed to compete in the fast-moving AI race.
In April, Meta said it could spend as much as $72 billion on capital expenditures this year, with a focus on AI and the data centers used to train and run the models.
Over the past several months, the CEO has personally recruited a team of experts seeking to achieve "superintelligence,' the notion that machines can perform as well as or better than humans at many tasks. This kind of generative AI demands even more power, which has sparked an industrywide rush to build large data centers and secure expensive chips from suppliers like Nvidia.
The new Meta Superintelligence Labs team includes researchers poached from OpenAI, Google's DeepMind and other top AI companies. Meta recently tapped Scale AI co-founder Alexandr Wang as chief AI officer, and spent $14.3 billion on a 49% stake in his firm.
Zuckerberg also successfully courted former GitHub CEO Nat Friedman, AI startup founder Daniel Gross, and Apple's Ruoming Pang — who was lured to Meta with a compensation package valued at more than $200 million, Bloomberg News reported.
Zuckerberg on Monday described the data centers under development as multigigawatt "clusters,' which would rank among the largest in the world. Meta is building its biggest facility in Richland Parish, Louisiana, which the Facebook co-founder has touted as being nearly the size of Manhattan.
While most data centers today house only hundreds of megawatts of capacity apiece, several AI and major technology companies like OpenAI and Oracle are involved in plans to develop facilities capable of handling several gigawatts, or enough energy to power nearly 900,000 homes annually, according to Carbon Collective. That scale of power is seen as necessary to achieve superintelligence. In his post, Zuckerberg cited analyst firm SemiAnalysis as saying Meta is on track to be the first with a "supercluster' that houses more than a gigawatt of capacity.
Shares of the Menlo Park, California-based company have gained 23% this year through Friday's close.
In his post on Monday, Zuckerberg reaffirmed that the company is going to invest "hundreds of billions of dollars' into data center capacity to build superintelligence. "We have the capital from our business to do this,' he wrote.
Meta, which makes the vast majority of its revenue from advertising on Facebook, Instagram, WhatsApp and Messenger, has continued to see year-over-year growth in sales.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Nvidia to resume H20 AI chip sales to China in U.S. reversal
Nvidia to resume H20 AI chip sales to China in U.S. reversal

Japan Times

time12 hours ago

  • Japan Times

Nvidia to resume H20 AI chip sales to China in U.S. reversal

Nvidia plans to resume sales of its H20 AI chip to China after securing Washington's assurances that such shipments would get approved, a dramatic reversal from the Trump administration's earlier stance. U.S. government officials told Nvidia they would green-light export licenses for the H20 artificial intelligence accelerator, the company said in a blog post. That China-specific variant was created to comply with earlier trade curbs, but has since April also been blocked from sale in the country without a U.S. permit. Billionaire co-founder Jensen Huang appeared on Chinese state broadcaster CCTV shortly after Nvidia announced the decision, saying the company had secured approval to begin shipping. The U.S. move comes after weeks of thawing relations between Washington and Beijing, guided by an opaque truce that's designed to see both sides approve exports of crucial technologies. The U.S. wants China to allow more sales of essential rare-earth minerals, and in exchange is lifting a spate of recent export controls that were imposed in the lead-up to last month's trade talks in London. Throughout those talks, President Donald Trump's team insisted that controls on Nvidia's H20 chips were not up for discussion. It marks a massive win for Huang, who has branded Washington's chip curbs a "failure' that fueled the rise of Huawei. And it's a boon to Chinese companies from DeepSeek to Alibaba that need Nvidia chips to train, expand and host the AI services they're building to compete with the likes of OpenAI. Nasdaq futures surged after Nvidia's announcement, with Hong Kong and Chinese stocks also reacting positively. The Hang Seng Tech Index rose as much as 2.2%, while data center operators like Beijing Sinnet Technology jumped as much as 8.4%. A spokesperson for the U.S. Commerce Department, which oversees semiconductor export controls, did not respond to a request for comment. "Nvidia resuming the sale of H20 to China is obviously positive,' said Vey-Sern Ling, managing director at Union Bancaire Privee. "Not just for the company but also the AI semiconductor supply chain, as well as China tech platforms that are building AI capabilities. This is also a good development for U.S.-China relations.' Huang met with Trump last week and is in Beijing this week to attend a large supply chain expo. He said Nvidia also plans to debut a new China-focused product — the RTX PRO — which the company described as "fully compliant,' meaning that it falls below the technical thresholds that would necessitate Washington's approval in the first place. He has said the U.S. doesn't need to worry about the Chinese military using Nvidia chips, since it can't rely on something the U.S. could restrict at any point. The H20 is a less powerful version of Nvidia's gold-standard AI acceleration semiconductors, designed specifically for China. It's part of the company's response to U.S. restrictions on AI hardware sales to China, which were first imposed in 2022 and ratcheted up several times since, capturing two successive generations of processors Nvidia made for the China market — the H800, followed by the H20. After Trump officials controlled the sale of H20 chips in April, Huang said Nvidia would suffer a cost of billions of dollars due to unsold inventory. Huang is seeking discussions with Chinese leaders, including the commerce minister this week, with Nvidia's central role in the global AI rollout likely on the agenda. It made history last week as the first company to hit $4 trillion of market value, a testament to its central role in providing the hardware for a post-ChatGPT AI infrastructure building boom.

China steps in as U.S. pulls back from diplomacy, report says
China steps in as U.S. pulls back from diplomacy, report says

Japan Times

time15 hours ago

  • Japan Times

China steps in as U.S. pulls back from diplomacy, report says

China is increasing its diplomatic reach as President Donald Trump's administration pares back America's international presence, Democrats from the U.S. Senate Foreign Relations Committee said in a report released on Monday. The report, the result of months of staff travel and research, was released as the Trump administration makes deep cuts to the State Department, including beginning on Friday to fire more than 1,350 U.S.-based employees, part of a total reduction of nearly 3,000 people for the U.S.-based workforce. The administration has also cut billions of dollars in foreign aid, effectively shutting down the U.S. Agency for International Development, which funded the majority of U.S. humanitarian and development assistance worldwide. That led to the firing of thousands of its employees and contractors and the slashing of more than 80% of its programs. Critics said the cuts would undermine Washington's ability to defend and promote U.S. interests abroad. Research published in The Lancet medical journal said the cuts to USAID and its dismantling could result in more than 14 million additional deaths by 2030. "Within days of the Trump administration taking office and starting to roll back our commitments around the world, China was already labeling the United States an unreliable partner," Senator Jeanne Shaheen, the top committee Democrat, told reporters on a conference call about the report. "At a time when we're retreating, they are expanding their footprint," she said. The Trump administration says its changes help align foreign policy with Trump's "America First" agenda, and are part of a push to shrink the federal bureaucracy and cut what Trump officials say has been wasteful spending. Trump has said the U.S. pays disproportionately for foreign aid and he wants other countries to shoulder more of the burden. The Democrats' 91-page report listed ways, from broadcasting to health programs and development efforts, that committee researchers said China is expanding its influence. It lists dozens of cases in which the committee researchers found that China had stepped in as the U.S. eliminated or cut back international programs, from funding vaccines and providing food to infrastructure development. For example, in Africa, as the U.S. terminated food assistance programs, China in March donated $2 million in rice to Uganda. In May, after the U.S. terminated a $37 million HIV/AIDS grant in Zambia, China said it would help the African nation fight HIV/AIDS, including by donating 500,000 rapid HIV testing kits and planning more meetings to discuss its continued partnership on the issue. In Southeast Asia, Chinese President Xi Jinping embarked on a tour to meet with leaders in Vietnam, Cambodia and Malaysia, the report said. The trip yielded an agreement in Vietnam for railroad connections, 37 cooperation agreements in Cambodia in sectors including energy, education and infrastructure and technical and manufacturing exchanges in Malaysia. And in Latin America, China in May hosted the "China-Latin American and the Caribbean Forum" and announced it would provide a $9 billion credit line and additional infrastructure investments for the region.

With China and Trump, Japan defense report says world entering ‘new era of crisis'
With China and Trump, Japan defense report says world entering ‘new era of crisis'

Japan Times

time15 hours ago

  • Japan Times

With China and Trump, Japan defense report says world entering ‘new era of crisis'

The international community has entered 'a new era of crisis,' according to Japan's annual defense report released Tuesday, with China representing Tokyo's 'greatest strategic challenge' and U.S. President Donald Trump's policies expected to 'significantly impact' the Indo-Pacific region. The annual report, which was approved by the Cabinet at a meeting the same day, is packed with tough assessments of the regional security environment Japan faces, as well as a detailed description of progress it has made in strengthening its own defenses. 'The international community is facing its greatest challenge since the end of the war and has entered a new era of crisis,' the white paper says. 'The issues ... are particularly pronounced in the Indo-Pacific region, where Japan is located, and are likely to become even more serious in the future.' The report singles out China as 'the greatest strategic challenge Japan has ever faced' and says the global balance of power is dramatically shifting, with competition between nations becoming more apparent. 'In particular, competition between the United States and China is likely to intensify,' it says. Trump pushed that competition into overdrive in his first term, and has continued to do so during the first six months of his latest term. U.S. President Donald Trump holds a joint news conference with Prime Minister Shigeru Ishiba in the East Room of the White House in Washington in February. | REUTERS The white paper also mentions the second Trump White House's early focus on Ukraine, the Middle East and his administration's commitment to Asia while also alluding to the possibility of pronounced shifts in policy. 'U.S. actions will significantly impact the security environment in the Indo-Pacific region, where Japan is located, and will require continued attention,' it says. While Japan has welcomed Washington's pledged commitment to the region, reiterated by U.S. Secretary of Defense Pete Hegseth during a March visit to Tokyo, Trump has also been demanding that the American ally take on more of the burden for its defense in what he has said is their 'one-sided' alliance. Beyond a campaign of unilateral tariffs that threaten to throw regional economies into chaos, the Trump administration has also called for allies — including Japan — to boost defense spending to 5% of their gross domestic product. Japan has committed to a goal of spending 2% of its gross domestic product on defense, laying out a five-year, ¥43 trillion plan in 2022. According to the paper, some 61% of this plan has already been put into action, with defense-related spending in the fiscal year through March 2026 set to total ¥9.9 trillion ($68.4 billion), or 1.8% of GDP in line with 2022 budget standards — a figure that has Japan within striking distance of the 2% target. Moves by the Chinese military in the airspace and waters around Japan have been a driving factor in the push to spend more on defense. A Chinese J-15 fighter jet from the aircraft carrier Shandong makes "an unusual approach" to a Maritime Self-Defense Force P-3C patrol aircraft that was conducting surveillance above the Pacific Ocean on June 8. | DEFENSE MINISTRY / VIA AFP-JIJI The white paper notes that the Chinese military is 'stepping up their activities throughout areas surrounding Japan, including the East China Sea around the Senkaku Islands, the Sea of ​​Japan and the western Pacific Ocean, beyond the so-called first-island chain and extending to the second-island chain.' It cites several recent incidents, including the China Coast Guard's deployment of a helicopter in Japan's territorial airspace around the Japanese-controlled, Chinese-claimed Senkakus in May. The white paper also noted a Chinese military aircraft's incursion into Japanese airspace last August and a Chinese aircraft carrier sailing close to Japan's territorial waters the following month — both firsts. Beijing has continued to chip away at precedent in recent months, dispatching both of its active aircraft carriers deep into the western Pacific last month and sending its warplanes near Japanese aircraft multiple times in recent weeks, moves that Tokyo said risked collisions. 'China's active military activities have the potential to seriously affect Japan's security, and this is of grave concern,' the paper says. The report also echoes concerns stated in last year's version about China's designs on self-ruled Taiwan, noting Beijing's ramped-up pace of military activities around the island. The possibility of a 'serious situation' akin to Russia's war in Ukraine occurring in East Asia 'cannot be ruled out,' it said, in a view widely seen as highlighting fears of a Chinese invasion of Taiwan. 'As the United States continues to make clear its stance of supporting Taiwan militarily, China — which regards the Taiwan issue as the 'core of its core interests' — is unlikely to compromise, and the conflict between the U.S. and China over the issue may become even more pronounced,' the paper notes. A sailor raises the Maritime Self-Defense Force ensign on board the MSDF's Ise helicopter destroyer as it docks at the international port in Manila on June 21. | AFP-JIJI Trump's predecessor, Joe Biden, repeatedly hinted that the U.S. would come to Taiwan's aid in the event of an invasion. Since taking office, however, Trump has largely avoided the issue — though the Pentagon is believed to pushing Japan to make clear the role it would play in the event of a U.S.-China conflict over Taiwan. Tokyo is widely seen as viewing any crisis over Taiwan as an existential crisis for Japan, as well. 'Stability in the situation surrounding Taiwan is important not only for the security of Japan, but also for the stability of the international community, and Japan must continue to monitor the situation with even greater vigilance,' the white paper says. The strong words about one of the most sensitive subjects in the Sino-Japanese relationship are sure to anger China, which calls Taiwan a renegade province that must be unified with the mainland — by force, if necessary. According to the report, Russia's military cooperation with China is another area of 'serious concern.' The partners have conducted joint bomber flights and naval voyages around the archipelago that Tokyo says 'are clearly intended as a demonstration of force against Japan.' Japanese soldiers with a mobile missile launcher that can hit ships more than 160 kilometers away at Camp Katsuren in Okinawa Prefecture on May 23 | Ko Sasaki / The New York Times Russia's growing military ties with North Korea — including Pyongyang's shipment of weapons and deployment of troops for use in the Ukraine conflict — was also noted as a key concern. In addition, the report said, 'there is a risk that Russia may transfer nuclear and missile-related technology to North Korea, which could have a long-term impact on the military balance in the Indo-Pacific.' North Korea was characterized as 'a more serious and imminent threat to Japan's security than ever before,' the white paper said, noting that the country possesses 'the capability to attack Japan by equipping ballistic missiles with nuclear weapons.' In order to tackle these challenges, as well as address any potential fallout from U.S. shifts under Trump, the white paper also concluded that Japan must also collaborate with 'like-minded countries ... in order to counter unilateral attempts to change the status quo by force or coercion.' 'It is extremely important to strengthen cooperation not only with allies, but also with as many countries as possible,' the report says.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store