Meta

Meta eyes $35 billion data centre financing

Meta Platforms is seeking to raise $35 billion to help fund the development of its data centres in the US, with Apollo Global Management reportedly leading the financing. The need for increased computational power to support AI systems has driven Meta to focus heavily on expanding its AI infrastructure. The company has already committed to spending up to $65 billion this year on AI development.

The financing deal comes as Meta continues to build new data centres, including a planned $10 billion AI hub in Louisiana, US. The Louisiana centre will run on renewable energy, in partnership with the local utility provider Entergy. Despite the growing demand for data centre space, industry scepticism remains, especially regarding the financial returns from such large-scale investments.

Meta’s push for more AI infrastructure highlights the competitive race among tech companies to meet the rising demand for AI capabilities, with the company planning further expansions in the coming years.

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Meta to test paid AI chatbot service

Meta Platforms is preparing to test a paid subscription model for its AI chatbot, Meta AI, as it looks to compete with industry giants like OpenAI and Microsoft. The test will begin in the second quarter of this year, although significant revenue from the service is not expected until next year. Meta AI, launched in September 2023, offers virtual assistance powered by advanced language models.

CEO Mark Zuckerberg’s plans to boost the company’s AI capabilities include a $65 billion investment this year to expand AI infrastructure. Meta is also working on humanoid robots under its Reality Labs division. As tech companies race to dominate the AI space, Meta’s move to monetise its chatbot aligns with broader industry trends, with Microsoft and Amazon also making substantial investments in AI.

Despite the rising demand for AI services, Meta has not yet revealed the specific pricing for the new subscription service. However, the development highlights the company’s effort to enhance its AI offerings while positioning itself as a strong competitor in the rapidly expanding AI market.

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Instagram considers new app for Reels

Instagram is considering launching a separate app for its Reels feature, which focuses on short-form videos, according to remarks made by Instagram chief Adam Mosseri this week. The potential move is seen as an effort to capitalise on the uncertain future of TikTok in the US, aiming to offer a similar video-scrolling experience. Meta, the parent company of Instagram, has yet to comment on the report.

This comes just months after Meta introduced a new video-editing app, Edits, in January, which appears to target users of CapCut, a popular video editor owned by TikTok’s parent company, ByteDance. Meta’s previous attempt to launch a standalone video-sharing app, Lasso, in 2018 failed to gain traction and was eventually discontinued.

By exploring a dedicated app for Reels, Instagram hopes to strengthen its position in the competitive short-form video market, where TikTok currently dominates.

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Trump urges Apple to drop diversity policies after shareholder vote

Apple is under renewed pressure over its diversity policies after President Donald Trump urged the company to abandon them. His call came a day after shareholders overwhelmingly voted to keep the initiatives, despite growing opposition from conservative groups.

Trump took to Truth Social to demand the complete removal of diversity, equity, and inclusion (DEI) policies, calling them a ‘hoax’ that has harmed the country.

Major US corporations, including Meta and Alphabet, have scaled back DEI efforts since Trump’s return to office. He has argued these policies are discriminatory and has suggested that the Department of Justice could investigate their legality.

His administration has already moved to end DEI initiatives in federal agencies and the private sector, citing concerns over fairness and merit-based hiring.

Apple has defended its approach, stating that it does not impose quotas but focuses on broader inclusion efforts. CEO Tim Cook reaffirmed the company’s commitment to diversity while acknowledging potential adjustments in response to changing legal landscapes. He emphasised that Apple’s core values of dignity and respect would remain unchanged.

Shareholder support for DEI policies at Apple contrasts with recent corporate trends, as many companies have been scaling back such programmes.

Critics warn that continuing these efforts could expose businesses to legal challenges, while supporters argue they are essential for addressing long-standing inequalities. Apple has yet to comment on whether it will revise its policies following Trump’s latest remarks.

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Meta faces lawsuit over hiring practices

A US judge ruled that Meta must face a lawsuit alleging it prioritises hiring foreign workers to pay them lower wages. The proposed class action involves three US citizens who claim they were repeatedly rejected despite being qualified for roles at the company.

The plaintiffs argue that Meta systematically favours visa holders, citing statistics showing a significant portion of its US workforce holds H-1B visas. The company denies the claims, stating there is no evidence of intentional discrimination or that the plaintiffs would have been hired otherwise.

A 2021 settlement saw Meta agree to pay up to $14.25 million over similar government allegations. The latest ruling follows a 2023 appeals court decision, which cited a Civil War-era law protecting US citizens from discrimination in contracts.

Plaintiffs hope the lawsuit will expose widespread hiring biases in the tech sector. Their legal team suggests further enforcement or legislative action may be necessary to address the issue.

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Meta considers $200 billion AI campus project

Meta Platforms is reportedly in talks to build a new data centre campus for its AI projects, potentially costing over $200 billion, according to sources familiar with the matter. The company is considering locations in states like Louisiana, Wyoming, and Texas, with senior executives visiting potential sites this month.

This comes as the AI sector sees a surge in investment, especially following the launch of Microsoft-backed OpenAI’s ChatGPT in 2022. Companies are eager to incorporate AI into their products, leading to significant spending on AI infrastructure.

Despite the report, a Meta spokesperson denied the claims, stating that its data centre plans and capital expenditures have already been disclosed and calling the rest ‘pure speculation’. Meta’s CEO, Mark Zuckerberg, had previously mentioned that the company plans to invest up to $65 billion this year to expand its AI infrastructure.

In comparison, Microsoft has pledged around $80 billion in data centre investments for fiscal 2025, while Amazon has indicated its 2025 spending could exceed $75 billion.

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Stricter rules for WhatsApp after EU designation

WhatsApp has officially met the threshold set by the EU’s Digital Services Act (DSA), marking its designation as a Very Large Online Platform.

The messaging app, owned by Meta Platforms, reported an average of 46.8 million monthly users in the EU during the latter half of 2024, surpassing the 45-million-user threshold established by the DSA.

The new classification requires WhatsApp to strengthen efforts in tackling illegal and harmful online content.

The platform must assess system risks related to public security, fundamental rights, and protecting minors within four months to comply with the DSA. Violations could result in fines reaching up to 6% of global annual revenue.

Meta’s Instagram and Facebook are already subject to the same rules. While complying with the stricter regulations, Meta leadership, including Mark Zuckerberg, has expressed concerns about the growing impact of EU tech laws.

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Meta announces LlamaCon as it accelerates AI push

Meta has unveiled plans to host its first-ever developer conference dedicated to generative AI, called LlamaCon. Scheduled for April 29, the event will focus on Meta’s open-source AI efforts, particularly its Llama models.

The company aims to share updates that will help developers build new AI-powered applications. Additional details are expected in the coming weeks, with Meta’s broader annual conference, Meta Connect, set for September.

The company has positioned itself as a leader in open-source AI, boasting hundreds of millions of downloads of its Llama models. Major firms, including Goldman Sachs, AT&T, and Accenture, are among those integrating Llama into their services.

However, reports suggest that Meta has been caught off guard by the rapid rise of Chinese AI company DeepSeek, whose latest models may challenge Llama’s dominance. Meta has reportedly launched internal efforts to study DeepSeek’s approach to efficiency and cost reduction.

With a planned $80 billion investment in AI this year, Meta is pushing ahead with new Llama models that could include reasoning, multimodal, and autonomous capabilities. CEO Mark Zuckerberg has expressed confidence in Llama’s potential to become the most widely used AI model.

However, Meta is also facing legal and regulatory challenges, including lawsuits over alleged copyright violations and privacy concerns in the European Union that have delayed some AI launches.

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Meta plans the world’s longest undersea cable

Meta has announced plans for Project Waterworth, an ambitious 50,000km subsea cable system set to be the longest in the world. The infrastructure project aims to enhance global connectivity by linking the United States, India, Brazil, South Africa, and other regions. Designed with 24 fiber pairs, the system will offer significantly higher data capacity, supporting Meta’s growing AI-driven services and contributing to digital inclusion and economic growth in key markets.

The tech giant has been at the forefront of undersea cable development for over a decade, collaborating on more than 20 similar projects. With most of the world’s internet traffic reliant on such cables, concerns over security have intensified, particularly as geopolitical tensions rise. In response to recent incidents, NATO has increased surveillance of critical maritime infrastructure, while the UK is reassessing its ability to safeguard its undersea network against potential threats.

Meta plans to lay sections of the cable at depths of up to 7,000 meters and employ advanced burial techniques in high-risk areas to minimise risks. This move follows recent disruptions, such as the damage to Tonga’s undersea cable, which left much of the island in a digital blackout. Meanwhile, Meta’s decision to scale back fact-checking on Facebook and Instagram has drawn criticism, highlighting the broader implications of its expanding digital footprint.

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Ray-Ban Meta sales drive smart glasses growth

EssilorLuxottica is set to ramp up production of its smart glasses, driven by the success of its Ray-Ban Meta range developed in partnership with Meta. Since their launch in September 2023, over two million units have been sold, with growing user engagement indicating a shift towards mainstream adoption.

The eyewear giant, which has collaborated with Meta since 2019, aims to expand its smart glasses portfolio with new brands and features. The company is also considering subscription-based services and additional functionalities to enhance user experience.

To meet rising demand, EssilorLuxottica plans to increase production capacity to 10 million units annually by the end of next year. Manufacturing will be expanded across China and Southeast Asia, enabling the company to support future product releases, including the development of Nuance Audio glasses with integrated hearing solutions.

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