Donald Trump has reached a legal settlement with Meta, the parent company of Facebook and Instagram, which will result in a $25 million payout. The settlement stems from a lawsuit Trump filed in 2021 after the social media giant suspended his accounts following the January 6 Capitol riot.
Meta lifted the final restrictions on Trump’s accounts in July 2024, ahead of the U.S. presidential elections. As part of the settlement, $22 million will be allocated to a fund for Trump’s presidential library, while the remaining funds will cover legal costs and compensation for other plaintiffs involved in the case. Importantly, Meta has not admitted any wrongdoing.
Meta initially suspended Trump’s accounts in 2021, imposing a minimum two-year ban. However, their relationship appeared to thaw when Zuckerberg visited Trump at his Mar-a-Lago resort after his election win. In December 2024, Meta also donated $1 million to Trump’s inauguration fund and Zuckerberg attended the event at the U.S. Capitol.
Trump, who had long criticized Zuckerberg and Facebook, calling the platform “anti-Trump” back in 2017, continued to express dissatisfaction. After his account was banned, he referred to Facebook as an “enemy of the people” in 2024. Meanwhile, Twitter, now rebranded as X and owned by Elon Musk, also banned Trump permanently but later reinstated his account after a poll favored his return.
In other Meta news, Zuckerberg defended the company’s $65 billion investment in artificial intelligence (AI) following concerns over a surge in popularity of DeepSeek, a Chinese AI app. Although DeepSeek’s rise affected many U.S. tech stocks, Meta’s stock rose after reporting better-than-expected financial results. Zuckerberg expressed confidence in Meta’s approach to AI, emphasizing its commitment to open-source AI, which he believes will keep the U.S. competitive in the global AI race.
Meta’s AI investments are part of a broader strategy to expand its infrastructure, with Zuckerberg betting that this investment will provide the company with a significant advantage in both service quality and scalability. He also highlighted the importance of AI in supporting the company’s ambitious goals for the future, including making significant strides in smart glasses technology.
Additionally, Zuckerberg shared plans to restore Facebook’s cultural relevance, acknowledging that the platform has lost some of its dominance to competitors like Instagram and TikTok. He also addressed Meta’s decision to end fact-checking on the platform, asserting that community notes would prove more effective. Despite these changes, Meta has not seen a drop in advertiser demand.
Meta reported impressive quarterly financial results, with $48 billion in revenue for the last three months of 2024, a 21% increase from the same period the previous year. AI investments have weighed on the company’s expenses, but Meta still posted a quarterly profit of more than $20 billion, reflecting a 49% increase year-on-year.
SOURCE: BBC
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