Meta to pay $25m to settle Trump lawsuit over ban

Meta, the parent company of Facebook and Instagram, has reached a legal agreement to pay approximately $25 million to settle a lawsuit filed by former President Donald Trump. This lawsuit stemmed from Trump's dissatisfaction with the suspension of his social media accounts following the events of January 6, 2021, when the Capitol was stormed. The Wall Street Journal was the first to report on this settlement. Of the total amount, around $22 million will be allocated to a fund dedicated to Trump's presidential library, while the remaining funds will cover legal expenses and compensate other individuals involved in the lawsuit. Importantly, Meta will not admit to any wrongdoing as part of this settlement. The company had suspended Trump's accounts in 2021, citing concerns over the potential for further violence. After Trump's election victory in November, there appeared to be a slight thaw in the previously strained relationship between Trump and Zuckerberg. In December, Meta even contributed $1 million to support Trump's inauguration, and Zuckerberg was present at the event, seated alongside other prominent tech figures. For years, Trump has been vocal in his criticism of Zuckerberg and Facebook, labeling the platform as 'anti-Trump' back in 2017. Their relationship deteriorated further after Trump's accounts were banned, leading him to describe Facebook as a 'disgrace' in March 2024. Meanwhile, Twitter, which has been rebranded as X and is now owned by Elon Musk, also banned Trump from its platform. Musk acquired Twitter for $44 billion and reinstated Trump after conducting a poll that showed support for lifting the ban. On the same day that the settlement was announced, Meta also defended its substantial investment in artificial intelligence (AI), amounting to $65 billion this year. Zuckerberg addressed investors, stating that there is much to learn from the recent rise of a Chinese AI application called DeepSeek, but he believes it is premature to form a definitive opinion on its implications for the future of AI. He expressed that the recent developments have only reinforced their commitment to focusing on AI technology. Despite a general downturn in tech stocks, Meta's stock price increased after the company reported better-than-expected financial results. However, questions linger regarding DeepSeek's claim of developing its app at a significantly lower cost than its American competitors. Zuckerberg emphasized that Meta is dedicated to creating an open-source AI model, which means they intend to share their technology freely with others. He believes this approach is vital for maintaining the United States' leadership in AI development. He stated, 'There's going to be an open-source standard globally, and I think for our own national advantage, it's important that it's an American standard. ' Recently, Meta announced plans to invest heavily in AI infrastructure, with Zuckerberg acknowledging ongoing debates about the best strategies for AI investment. However, he asserted that for a company like Meta, which serves billions of users worldwide, making substantial investments is a logical decision. He remarked, 'I would bet the ability to build out that kind of infrastructure is going to be a major advantage - for both the quality of the service and being able to serve the scale we want to. ' Additionally, he indicated that this year is crucial for the company in various aspects, including the potential success of their smart glasses. Zuckerberg has expressed his belief that within the next decade, all traditional glasses will be replaced by smart glasses. He also aims to restore Facebook's cultural relevance, as the platform has lost some of its popularity compared to competitors like Instagram and TikTok. Recently, Zuckerberg announced the decision to discontinue fact-checking on Facebook, believing that community notes would be a more effective method for managing information. He noted that despite these changes, there has been no decline in advertiser demand. In the last quarter of 2024, Meta reported over $48 billion in revenue, reflecting a 21% increase compared to the same period the previous year. Although AI spending has impacted the company's finances, they still achieved a quarterly profit exceeding $20 billion, representing a 49% increase from the previous year.