US President Donald Trump has reached a settlement with Meta, the tech giant that owns Facebook, Instagram, and WhatsApp, in a deal worth approximately $25 million. The settlement resolves Trump's lawsuit against the company following the suspension of his social media accounts after the Capitol riots on January 6, 2021. Of the settlement amount, around $22 million will be allocated to a fund for Trump's presidential library. This development follows Meta's decision to lift all restrictions on Trump's Facebook and Instagram accounts as of July 2024.
Meta's decision to suspend Trump's accounts in 2021 came with a promise to ban him from its platforms for at least two years. The move was a response to concerns about incitement and misinformation. Meanwhile, Elon Musk reinstated Trump’s Twitter account in 2022 after a poll narrowly supported the action. The settlement marks a significant closure for both Meta and Trump, allowing both parties to move forward.
Amidst these developments, Meta has also made strides in the artificial intelligence (AI) field. The company has made headlines by releasing an open-source AI model for free, diverging from the proprietary models favored by many US companies. Mark Zuckerberg, Meta's CEO, emphasized the importance of establishing an American standard in AI.
"There's going to be an open source standard globally and I think for our own national advantage it's important that it's an American standard." – Mark Zuckerberg
Zuckerberg has high expectations for technological advancements, predicting that smart glasses will replace all traditional glasses within a decade. To support these ambitions, Meta plans to invest up to $65 billion this year to expand its AI infrastructure. Zuckerberg believes this will give Meta a competitive edge in delivering high-quality services at scale.
"I would bet the ability to build out that kind of infrastructure is going to be a major advantage – for both the quality of the service and being able to serve the scale we want to," – Mark Zuckerberg
Financially, Meta has reported impressive results. The company posted a quarterly profit exceeding $20 billion, representing a 49% increase from the previous year. Revenue for the last three months of 2024 was reported at over $48 billion, marking a 21% rise from the same period in 2023. These positive financial outcomes have led to an uptick in Meta’s stock during after-hours trading.
In addition to financial growth, Zuckerberg has defended the company's decision to end fact-checking on Facebook, advocating for community notes as a more effective solution. He asserts that Meta aims to be a key player in the emerging AI industry, positioning the United States at the forefront of technological innovation.
"We take that seriously. We want to build the AI system that people around the world are using." – Mark Zuckerberg
The rise of Chinese AI app DeepSeek has ignited discussions on AI investment strategies. Nonetheless, Zuckerberg remains confident that significant investments in open-source AI are crucial for future success.
"If anything, I think the recent news has only strengthened our conviction that this is right thing for us to be focused on," – Mark Zuckerberg