Meta's Hyperion data center project faces $5 billion cost overruns while exploring AI model partnerships with Google and OpenAI.

Meta is in talks with Google and OpenAI to integrate their AI models, according to reports citing sources familiar with the discussions. These partnerships would be temporary as Meta races to make its next-generation model, Llama 5, competitive. The company has already adopted Anthropic models internally for coding support. A Meta spokesperson confirmed the company's strategy, stating: "We are taking an all-of-the-above approach to building the best AI products; and that includes building world-leading models ourselves, partnering with companies, as well as open sourcing technology."

Meta's AI ambitions are driving massive infrastructure investments, with the company planning to spend $50 billion on a Louisiana data center called Hyperion, a project confirmed by President Donald Trump. The initiative includes $29 billion in financing from Pacific Investment Management and Blue Owl Capital. However, the expansion has sparked significant backlash over Entergy Louisiana's $5 billion proposal to pass power plant construction costs to 1.1 million customers. Consumer advocates, climate groups, and retailers such as Walmart Inc. have urged regulators to block the plan, warning it could burden residents with additional costs tied to tech firms' energy demands. Entergy has defended the project, citing high-paying jobs and economic growth.

Meta's financial position remains robust, with the company reporting $25.56 billion in operating cash flow, $8.55 billion in free cash flow, and $47.07 billion in cash and marketable securities for the quarter ended June 30, 2025. The company reorganized its AI operations under Superintelligence Labs earlier this year following leadership changes and mixed reception for its Llama 4 model. Despite ongoing controversy surrounding the Hyperion project, analysts remain bullish on Meta's prospects. Bank of America's Justin Post called Meta one of the most compelling AI investments, citing its $14 billion stake in Scale AI and ad revenue growth, while highlighting elevated expectations tied to its AI ambitions. Meta shares slipped 1.65% in Friday's regular trading session, though Benzinga's Edge Stock Rankings suggest META maintains an upward trend across short, medium, and long-term periods.