Market Beats | Meta to Invest $65bn in AI Projects in 2025; Verizon Added More Subscribers Than Forecast; Dollar Suffers Worst Weekly Drop Since 2023; Apple 36-Year Veteran to Lead AI Efforts; Space Exploration Startup Furloughs Most Staff; Citadel Hires Related to Develop Miami Headquarter

—— Meta to Invest $65bn in AI Projects in 2025; Verizon Added More Subscribers Than Forecast; Dollar Suffers Worst Weekly Drop Since 2023; Apple 36-Year Veteran to Lead AI Efforts; Space Exploration Startup Furloughs Most Staff; Citadel Hires Related to Develop Miami Headquarter

1. Meta to Invest $65bn in AI Projects in 2025

Meta Platforms Inc. has announced a significant investment plan, earmarking as much as $65 billion for artificial intelligence projects in 2025. This major financial commitment will be directed towards various initiatives, including the construction of an exceptionally large data center and an expansion of the company’s AI personnel, according to CEO Mark Zuckerberg.

In a detailed Facebook post, Zuckerberg described the proposed data center as being vast enough to cover a substantial portion of Manhattan. He also outlined ambitious plans for the company’s technological infrastructure, aiming to bring approximately a gigawatt of computing power online by 2025 and expecting to operate over 1.3 million graphics processing units by the end of that year.

Zuckerberg emphasized the transformative potential of this investment, stating, “This is a massive effort, and over the coming years it will drive our core products and business, unlock historic innovation, and extend American technology leadership.”

This initiative follows Meta’s consistent investment in AI technologies, including a recent $10 billion investment in a new data center in Louisiana and the acquisition of advanced computer chips to enhance products such as its AI assistant and Ray-Ban smartglasses. Additionally, Meta plans a significant expansion of its AI teams to support these efforts in 2025.

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2. Verizon Added More Subscribers Than Forecast

Verizon Communications Inc. exceeded analysts’ expectations with its fourth-quarter financial performance, reporting significant gains in both mobile-phone and broadband customer segments. The company announced a net addition of 568,000 monthly phone subscribers, surpassing the anticipated 498,000, according to a recent statement.

Verizon’s fourth-quarter operating revenue rose to $35.7 billion, outperforming the projected $35.3 billion average. Additionally, adjusted earnings for the quarter reached $1.10 per share, slightly above the expected $1.09.

The company also saw notable growth in its broadband services, adding 408,000 net broadband subscribers during the quarter—nearly double the analysts’ expectations of 227,000. This increase includes a rise of 51,000 Fios fiber customers and 373,000 new customers in its fixed wireless business.

Verizon’s CEO Hans Vestberg highlighted the success of their broadband strategy, which was introduced in the third quarter. “Our broadband strategy that we laid out in the third quarter is really resonating with the market,” Vestberg commented during an interview on Bloomberg TV. This strategy’s effectiveness is evident in the robust subscriber growth and financial results reported for the quarter.

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3. Verizon Added More Subscribers Than Forecast

The U.S. dollar is concluding what has been its most challenging week in a year and a half, largely due to ongoing discussions about tariffs by President Donald Trump that have yet to lead to concrete actions.

The Bloomberg Dollar Spot Index, which tracks the performance of the dollar against a basket of international currencies, has fallen by approximately 1.7% since the close of last Friday. This marks the sharpest one-week decline since July 2023, coinciding with the period when the Federal Reserve concluded its monetary policy tightening cycle. The losses for the dollar intensified late Thursday following President Trump’s signals of a potentially softer approach towards tariffs on China.

Despite frequent threats of imposing tariffs on major U.S. trading partners like Canada and Mexico, Trump has yet to sign any executive orders that would immediately enact these tariffs. Instead, he has directed the Treasury and Commerce departments to review current trade relations and deliver their findings by April 1.

According to Matthew Hornbach, the head of macro strategy at Morgan Stanley, investors were initially reluctant to sell dollars around the time of the inauguration, anticipating that Trump might quickly implement tariffs. However, as direct actions have not yet materialized, investors feel they now have more leeway to make decisions, contributing to the dollar’s recent decline.

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4. Apple 36-Year Veteran to Lead AI Efforts

Kim Vorrath, a seasoned executive at Apple Inc., known for her role in resolving product issues and successfully launching major projects, has been appointed to lead efforts in enhancing the company’s artificial intelligence and Siri functionalities.

Recently transitioned to the AI and machine learning division, Vorrath will serve as a top deputy to John Giannandrea, Apple’s AI chief. This internal move, reported by sources familiar with the matter who prefer to remain anonymous, has not been officially announced yet.

Apple’s decision to position Vorrath in this new role underscores the company’s urgency in advancing its AI capabilities, an area where it has notably lagged behind competitors such as OpenAI, Meta Platforms Inc., and Google. Apple’s AI platform, including its once-pioneering Siri digital assistant, has struggled with slow development and implementation compared to its more innovative rivals.

For instance, OpenAI has introduced versatile chatbots, Samsung has quickly integrated AI features into its devices, and Amazon is adapting its Alexa to better fit into the evolving AI landscape. With Vorrath’s proven track record in project management and execution, Apple aims to accelerate improvements and reclaim a leading position in the competitive AI domain.

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5. Space Exploration Startup Furloughs Most Staff

Space Perspective, a startup supported by Richard Branson that aims to take tourists to the stratosphere via balloon, has faced significant financial challenges, leading to the furlough of most of its workforce. The company, based in Titusville, Florida, has retained only a minimal number of employees following internal announcements made in November and December, according to sources who wished to remain anonymous due to the confidential nature of the situation.

The financial difficulties have also led to legal issues. Last week, the Titusville-Cocoa Airport Authority filed a legal complaint against Space Perspective, claiming the company owes over $90,000 in unpaid rent for the period from May to November. On December 2, the company received a notice of default from the airport authority, which threatened to terminate Space Perspective’s leases and evict the company unless it paid the full amount owed within ten days.

A spokesperson for Space Perspective acknowledged the furloughs, stating that the company is repositioning itself as it seeks further funding. However, the company has not provided additional comments on the number of jobs affected, the specific reasons for the furloughs, or the lawsuit filed by the airport authority. This situation underscores the financial and operational hurdles faced by the ambitious aerospace venture.

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6. Citadel Hires Related to Develop Miami Headquarter

Ken Griffin is advancing his plans to establish a new Miami headquarters for his Citadel businesses by collaborating with Related Cos., a prominent developer recognized for projects like Hudson Yards. This partnership will focus on constructing a 54-story tower along the waterfront at 1201 Brickell Bay Drive in Miami.

A Citadel spokesperson expressed enthusiasm about the collaboration, stating, “We are excited to partner with the team from Related Companies as we work together to develop an iconic tower that will redefine Miami’s skyline.” This move aligns with Griffin’s announcement in 2022 that he intended to relocate his businesses, including both Citadel and Citadel Securities, from Chicago to Miami. The new headquarters is planned for the Brickell neighborhood and will encompass a total of 1.7 million square feet.

Originally, Griffin had partnered with Sterling Bay for this project but severed ties in 2023. The forthcoming building is ambitiously designed to also house a hotel on its upper floors, offer a public pedestrian path along the waterfront, and include spaces for retail and waterfront dining.

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7. NY Governor Plans $13.5mn Budget to Ban Phones in Class

New York Governor Kathy Hochul has proposed allocating $13.5 million in her upcoming budget to assist school districts in enforcing a classroom ban on cell phones. This initiative aims to create a distraction-free learning environment for students. The budget allocation, pending legislative approval, is intended to cover the expenses associated with implementing the ban, such as acquiring materials to securely store phones during school hours.

The proposed ban would impact approximately 2.5 million students across New York’s 4,400 public schools. Governor Hochul, who advocated for this policy last year, highlights its potential benefits for both mental health and academic performance by mitigating the distractions caused by excessive screen time.

This concern is supported by findings from a Pew Research Center survey, which indicates that 70% of high school teachers and one-third of middle school teachers view student distraction by cell phones as a significant issue in their classrooms.

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