Zuckerberg's Meta To Buy 350K GPUs: A $9 Billion AI Investment for AGI

Unveiling Meta's monumental $9 billion venture into AI: A strategic pivot towards artificial general intelligence through a massive acquisition of Nvidia H100 GPUs, setting new industry benchmarks.

Zuckerberg's Meta To Buy 350K GPUs: A $9 Billion AI Investment for AGI

Monday January 22, 2024,

2 min Read

Mark Zuckerberg, the CEO of Meta Platforms Inc., has announced a monumental investment in artificial intelligence (AI) infrastructure, revealing plans to acquire around 350,000 Nvidia H100 graphics processing units (GPUs) by the end of 2024. This ambitious move is part of Meta's broader strategy to advance its capabilities in artificial general intelligence (AGI), aiming to revolutionise its services across various domains, including AI assistants, tools for creators, and business solutions.

The magnitude of this investment is underscored by the sheer number of GPUs involved and their cost. The H100 units, priced between $25,000 to $30,000 each, could see Meta's expenditure exceed $9 billion, although bulk purchasing may offer some cost benefits. This significant outlay is further emphasised by Meta's plan to add these GPUs to an existing infrastructure, projected to be equivalent to 600,000 H100 units, possibly including chips from other manufacturers like Advanced Micro Devices Inc.

Meta's focus on AI as a critical driver for user engagement on its platforms is clear. Their aim is to leverage AI to enhance user experience and, consequently, advertising revenue. This strategy aligns with the broader trend in the tech industry, where companies like Microsoft Corp., Google LLC, and Amazon.com Inc. have also invested heavily in AI, purchasing tens of thousands of H100 GPUs.

This development indicates a major shift in Meta's strategic focus. While the company has previously invested billions in developing the metaverse and virtual reality products, its latest move suggests a pivot towards AI as a primary area of development and investment. According to Zuckerberg, AI will be Meta's biggest investment area in 2024, both in engineering and computing resources.

Zuckerberg's vision includes the integration of AI with the metaverse, foreseeing a future where AI and advanced devices like smart glasses play a significant role in daily interactions. Meta's commitment to AI is further demonstrated by its plans to open-source its AI models, including the newly developed Llama 3, an alternative to OpenAI's ChatGPT models.

This strategic direction by Meta not only signifies a significant investment in AI but also reflects the company's adaptability and willingness to pivot towards emerging technologies that promise to reshape the digital landscape