Meta CEO Mark Zuckerberg is pushing to make the company a leader in artificial intelligence, but investors are increasingly concerned about how President Donald Trump’s tariffs-heavy trade policies might impact this ambitious strategy. The company’s plans will be under scrutiny this week as Meta hosts its first Llama-branded conference for AI developers on Tuesday, followed by its quarterly earnings report on Wednesday.
Trump’s Tariffs and Tech Industry Concerns
Tech companies are already expressing concerns about the potential impact of Trump’s tariffs. Intel CFO David Zinsner warned that U.S. trade policies have increased the chance of an economic slowdown, while Google CFO Anat Ashkenazi acknowledged that tariff-related issues could cause fluctuations in spending.
Meta’s AI Infrastructure Spending
Despite these concerns, analysts expect Meta to maintain its plan to spend up to $65 billion on AI infrastructure this year. Some believe the company might even increase this figure, given AI’s status as a core priority. “We do not expect META to cut its CapX guidance of $60B-$65B in 2025, for its GenAI infrastructure, because they see this as an important 10-year investment,” Needham analysts noted.
LlamaCon Event and AI Investments
Investors will be monitoring Meta’s LlamaCon event for signs that its AI investments are yielding immediate business results. The conference focuses on Meta’s Llama family of AI models, which have the potential to power AI agents for businesses. Analysts see significant potential in this area, with William Blair’s Ralph Schackart noting that Meta has an “early mover advantage at scale in a multi-trillion dollar market.”
Meta AI Digital Assistant
Analysts are also watching Meta’s AI digital assistant, which represents the second pillar of Zuckerberg’s AI strategy. The company is reportedly planning a stand-alone Meta AI app and testing a paid subscription service. While Meta’s vast user base gives it an advantage, analysts caution that user interaction with Meta AI may differ from rival chat apps.
Challenges Ahead
Ken Gawrelski of Wells Fargo noted that Meta needs to evaluate whether its Llama investment remains competitive and generates sufficient returns. The path forward will be closely watched by investors and industry analysts as Meta navigates the complex landscape of AI development and Trump’s trade policies.
