Former US President Donald Trump sued Meta in 2021 after his social media accounts were suspended. The accounts were restricted following the January 6 Capitol riots. A legal settlement will now require Meta to pay around $25 million without admitting any fault.
The Wall Street Journal first reported the settlement. Approximately $22 million of the payout will go toward Trump’s presidential library fund. The remaining amount will cover legal fees and compensation for other plaintiffs. In 2024, Meta removed all restrictions on Trump’s accounts as the presidential election season approached.
Zuckerberg and Trump: A Changing Relationship
Tensions between Trump and Meta’s CEO, Mark Zuckerberg, have softened in recent years. In November, after Trump’s election win, Zuckerberg visited Mar-a-Lago. In December, Meta donated $1 million to Trump’s inauguration fund. Zuckerberg even attended the inauguration, sitting among other tech leaders.
Trump, however, had long criticized Zuckerberg and Facebook. In 2017, he labeled the platform “anti-Trump.” After his accounts were banned, Trump escalated his rhetoric, calling Facebook an “enemy of the people” in 2024.
Meanwhile, Elon Musk, now owner of Twitter (renamed X), restored Trump’s account in 2022. Musk’s decision came after a narrow victory in a user poll.
Meta’s AI Strategy: Defending $65 Billion Investment
Separately, Meta has faced scrutiny over its AI investments. This week, tech stocks fell after the sudden rise of DeepSeek, a Chinese AI app. Despite this, Meta’s stock rose due to strong financial results. Zuckerberg told investors Meta remains committed to its AI strategy, with a planned $65 billion infrastructure investment this year.
He highlighted Meta’s belief in open-source AI models, stating it was crucial for maintaining US leadership in the technology. According to Zuckerberg, global competition demands that the US establish a dominant AI standard.
Meta reported more than $48 billion in revenue for the last quarter of 2024, up 21% from the previous year. Profits rose 49% to over $20 billion, despite AI spending pressures. Zuckerberg noted the company’s focus on smart glasses, predicting they will replace traditional eyewear within ten years. He also defended the move to end fact-checking, arguing that community-driven notes would be more effective.
Meta’s investments, Zuckerberg concluded, position it to deliver both innovation and scale in the evolving AI industry.