Meta’s AI Backfire: How Zuckerberg Lost $29 Billion Overnight

Mark Zuckerberg’s wealth plunged by an astonishing $29 billion (£22.04 billion) in a single trading day after Meta’s shares suffered one of their steepest drops in years.

The tech billionaire’s fortune tumbled as investors reacted to Meta’s announcement of record artificial intelligence spending, sparking what analysts are calling one of the biggest market shocks of 2025.

The slide came after Meta Platforms Inc. revealed plans to pour billions more into AI infrastructure, triggering investor anxiety and a swift sell-off.

The company’s stock fell by more than 11%, wiping out tens of billions in market value overnight and knocking Zuckerberg from third to fifth place on the Bloomberg Billionaires Index.

Meta’s Record AI Spending Sends Shockwaves

Meta’s latest financial report outlined soaring ambition matched by mounting risk. The social media giant projected capital expenditures of between $70 billion (£53.21 billion) and $72 billion (£54.73 billion) for 2025, its highest-ever spending forecast.

A large portion of that sum will go toward AI data centres, custom chips, and infrastructure to support the company’s growing portfolio of artificial intelligence tools across Facebook, Instagram, and WhatsApp.

Meta also announced plans to raise up to $30 billion (£22.80 billion) through its largest bond sale to date, heightening investor unease over its aggressive expansion.

Analysts said the sheer scale of Meta’s spending rattled markets already questioning whether the AI race among Big Tech firms has reached a breaking point.

Despite exceeding quarterly earnings expectations, with revenue of around $51.4 billion (£39.07 billion) and earnings of $2.71 billion (£2.06 billion), Meta’s results were overshadowed by concerns about the spiralling cost of its AI ambitions.

The Stock Plunge And Its Ripple Effects

The 11% drop in Meta’s share price was among the steepest one-day declines for a major tech stock this year. As reported by the New York Post, the sell-off came despite strong user growth and ad revenue, driven largely by investor fears over future costs.

According to the Bloomberg Billionaires Index, Zuckerberg’s net worth fell by about $29 billion (£22.04 billion) to roughly $235 billion (£178 billion), marking one of the largest single-day losses ever recorded and pushing him down two places among the world’s richest.

The rout echoed a broader pullback in the tech sector as investors questioned whether massive AI investments can deliver near-term returns.

AI Hype Turns To Caution On Wall Street

Meta’s sharp decline reflected a growing shift in sentiment toward the wider technology market. Analysts cited mounting fears that the artificial intelligence boom, which drove record valuations through 2024, may now be outpacing real-world demand.

While Microsoft and Google have also committed billions to AI, Meta’s spending stood out for its scale relative to its market position.

The backlash largely stemmed from uncertainty about when Meta’s AI investments will begin producing meaningful returns.

The company has also forecast higher expenses for 2026 as it continues to hire top AI engineers and expand its global data centre network.

Despite market scepticism, Zuckerberg maintains that Meta’s long-term focus on AI will ‘drive the next era of innovation’ across its platforms.

Meta’s Long-Term Vision Amid Market Pressure

Meta has positioned its AI transformation as a multi-year strategy aimed at integrating advanced generative technologies throughout its ecosystem.

The company’s pivot away from its metaverse ambitions toward AI-powered services marks one of the costliest transitions in Silicon Valley history.

Although Wall Street’s initial reaction has been severe, Meta insists its investments are crucial to staying competitive in an increasingly AI-driven digital economy.

With development costs surging across the industry, Meta’s next quarterly report will be closely watched to see whether investor confidence rebounds—or if Zuckerberg’s $29 billion (£22.04 billion) setback signals deeper trouble ahead.

Originally published on IBTimes UK