US President Donald Trump has signed a settlement, anticipating that Meta will pay him approximately $25 million (£20 million), as reported by sources close to the agreement speaking to the BBC's US partner CBS.
In 2021, Trump sued Facebook and Instagram's parent company over the suspension of his accounts following the events of the January 6th Capitol riots.
Meta has not yet responded to the BBC's request for comment, but the Wall Street Journal was the first to report on the settlement.
$22 million of the settlement is slated for a fund intended for Trump's presidential library according to US media outlets. The remaining funds will cover legal fees and other plaintiffs involved in the lawsuit, with Meta not admitting any wrongdoing.
In a separate development, on Wednesday, Meta defended its $65 billion investment in artificial intelligence (AI) following market turbulence due to the sudden success of a Chinese AI app called DeepSeek.
CEO Mark Zuckerberg emphasized the importance of learning from DeepSeek's rise while stating it was premature to draw definitive conclusions about its impact on the future of AI.
Zuckerberg expressed confidence in Meta's commitment to "open-source" AI, which he believes is pivotal for the company's strategic direction amidst global competition in the AI sector.
In response to ongoing debate over AI investment strategies, Zuckerberg highlighted Meta's substantial investment as necessary for enhancing service quality and scaling for the billions of users the company serves worldwide.
Regarding the company's outlook for the year, Zuckerberg underscored the significance of advancing AI infrastructure and the anticipated success of the firm's smart glasses. He also reiterated his vision of smart glasses completely replacing traditional eyewear within the next decade.
In addressing the evolving landscape of social media platforms, Zuckerberg discussed efforts to revitalize Facebook’s appeal, acknowledging the platform's waning popularity compared to Instagram and TikTok.
Moreover, Zuckerberg defended Meta's decision to pivot away from fact-checking in favor of community notes, reassuring investors that this shift has not impacted advertiser interest.
Despite significant AI investment impacting its financials, Meta reported strong quarterly earnings totaling over $48 billion in revenue during the last three months of 2024—a 21% increase compared to the preceding year. The company also recorded a quarterly profit exceeding $20 billion, marking a 49% surge from the previous year.