Meta, Microsoft Increase AI Spending by Over $100B, Drive $394B Market Cap Rise

Meta and Microsoft are aggressively investing in artificial intelligence infrastructure as part of a high-stakes competition to dominate the future of AI technology. Meta plans to spend between $66 billion and $72 billion in 2025 on AI infrastructure, including data centers and superclusters such as Prometheus and Hyperion, to support its AI ambitions and product development. Microsoft is also ramping up its AI investment, set to spend a record $30 billion this quarter, signaling a strategic pivot toward AI leadership that could reshape cloud computing competition. Meta's AI-driven ad targeting tools have contributed to strong advertising revenue growth, with a 21% year-over-year increase and significant gains in ad impressions and prices. These investments and strong financial results have driven substantial stock price surges, with Meta's market capitalization increasing by $174 billion and Microsoft's by $220 billion, reflecting investor confidence in their AI strategies. Both companies emphasize that developing leading AI infrastructure will be a core advantage in the coming years, underscoring the transformative impact of AI across technology and business sectors.