Meta announced on Wednesday that it had agreed to pay former President Donald Trump $25 million to settle a lawsuit over the suspension of his Facebook and Instagram accounts following the January 6 Capitol riot.
The settlement, which funds Trump’s future presidential library and legal fees, marks a significant shift in the relationship between major tech firms and conservative political figures.
The move also underscores a broader transformation at Meta, where CEO Mark Zuckerberg has increasingly aligned himself with Trump’s administration and policy goals.
How Zuckerberg is reshaping Meta with Trump-friendly policies
As part of Meta’s evolving stance, Zuckerberg has implemented sweeping changes across the company.
He recently revised content moderation policies, allowing for more types of political speech, and dismantled diversity and inclusion initiatives.
The shift has sparked internal tensions at Meta but aligns with Trump’s broader criticism of tech censorship.
During a call with investors on Wednesday, Zuckerberg praised Trump’s administration for supporting American tech companies, stating,
This is going to be a big year for redefining our relationships with governments.
Meta’s settlement with Trump mirrors a recent $15 million agreement between ABC News and the former president over defamation claims.
Both settlements contribute to Trump’s presidential foundation and museum.
Meta posts strong earnings but revenue outlook uncertain
Despite legal settlements and policy shifts, Meta’s financial performance remains robust.
The company reported a 21% increase in revenue for the fourth quarter, reaching $48.4 billion, surpassing Wall Street’s expectations.
Profit jumped 49% year-over-year to $20.8 billion, largely driven by improvements in AI-powered ad targeting and content recommendations.
However, Meta’s forecast for the current quarter raised concerns among investors.
The company expects revenue between $39.5 billion and $41.8 billion, with the lower end falling short of analyst projections.
The uncertainty comes as Meta ramps up spending, planning capital expenditures between $60 billion and $65 billion in 2025—significantly higher than the $38 billion to $40 billion spent in 2024.
The company is focused on building AI infrastructure to compete with rivals like Google, Amazon, Microsoft, and OpenAI.
China’s DeepSeek heats up AI competition
Meta’s AI ambitions face growing competition, particularly from China’s DeepSeek, a startup that recently developed an advanced AI model at a fraction of the cost of its US counterparts.
DeepSeek leveraged open-source AI tools from companies like Meta, sparking debate over intellectual property and technological leadership.
During the investor call, Zuckerberg acknowledged DeepSeek as a “new competitor” but emphasized the need for American dominance in AI.
“For our own national advantage, it’s important that it’s an American standard,” he said, signalling a potential push for regulatory or policy interventions.
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