Meta Platforms (NASDAQ:META) seems to be in a strange spot amid the DeepSeek AI cost efficiency breakthrough after announcing its plans to spend as much as $65 billion on AI efforts in 2025 just last week. Indeed, it would be a bit of a shocker if CEO Mark Zuckerberg were to backtrack on the spending plans in such a short order. Either way, one has to think Zuckerberg and company are going to be very careful with how they spend every dollar of that supersized AI budget.

Early signs suggest Meta has no intention of recklessly spending on its most forward-looking AI pursuits. It’s spending with specific applications in mind. And for that reason, I’d argue Meta is shaping up to be a must-own stock for the next chapter of its AI growth story.

Meta is already thinking about the value its AI efforts could provide in the future.

Indeed, Meta is getting a pretty decent bang on its AI efforts thus far, but can it continue to unlock real, timely value through its expensive efforts?

As Meta looks to AI to do work fitting for a mid-level software engineer (these engineers pull in high six figures annually), perhaps the most significant returns from Meta’s bold AI bets are right around the corner. Indeed, it’s hard to imagine an AI coder coming for the jobs of many college-educated programmers and engineers. That said, the rise of “digital labor” is not something we should discount as we move into the latter part of the decade.

Notably, AI labor could drastically impact the coding scene as its advanced models become better at their jobs. Who knows? As AI becomes capable enough to move on from junior tasks to mid-level ones and perhaps eventually advanced tasks, the potential cost savings could lie in today’s seemingly hefty price of admission to get at the forefront of this AI boom.

Why the $65 billion figure isn’t anything to fret over amid the DeepSeek shock

As long as Meta has practical, realistic use cases, goals and milestones in mind for its AI, I have no problem with the amount the company is spending on the efforts. Whether it be $65 billion or markedly more, it seems like the investment may very well pale in comparison to the cost savings the firm could generate in the latter part of this decade. While China’s DeepSeek may act as what Trump hears as a “wake-up call,” I do believe Meta is already well ahead of the curve regarding models on the heavy and lighter end.

Perhaps it’s no mystery as to why Meta stock gained on the day the Nasdaq 100 sunk 3% on the back of the DeepSeek shock. The DeepSeek breakthrough seems to speak a great deal about the value of keeping AI open-source.

Looking further out, there are numerous opportunities for growth and efficiency gains that Meta’s AI could unlock. From replacing a portion of the workforce with AI labor to building even more effective tools for advertisers to the AI-induced hyper-personalization of its social media platforms (think higher-quality AI-generated videos to jolt growth in Reels), the possibilities are endless.

New AI features aren’t just intriguing; they’re incrementally evolving the platforms they’re rolled into.

Most recently, Meta AI noted it will have a “memory” to enhance the quality of its recommendations further. As more interesting AI features and tools come to Facebook, WhatsApp, Instagram, and Threads, perhaps Meta will be able to take user engagement to the next level.

Either way, Meta not only has a grand AI budget for 2025, but it has the ability to execute and the know-how to go after markets that are rich with economic profits.

With a still-modest 31.84 times trailing price-to-earnings (P/E) multiple, Meta is still a relative value play. But that doesn’t mean it won’t be due for a correction at some point in the future. If a stock market sell-off drags Meta down, perhaps value seekers will have a chance to jump in as it beckons in the next era of AI.

Just because Meta’s spending a lot does not mean it’s spending recklessly. If it’s spending in all the right areas (going after cost savings or earnings growth), perhaps the firm should be viewed as a more magnificent AI company than its six peers in the Mag Seven.

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