President Donald Trump has reached a $25 million legal settlement with Meta, the parent company of Facebook and Instagram.
The agreement resolves Trump’s 2021 lawsuit against the social media giant and its CEO, Mark Zuckerberg, over the suspension of his accounts following the January 6 Capitol riots.
The Wall Street Journal first reported the settlement, which does not require Meta to admit wrongdoing.
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Breakdown of the Settlement
- $22 million will be allocated to a fund for Trump’s presidential library.
- The remaining funds will cover legal expenses and compensate other plaintiffs who joined the lawsuit.
Trump’s accounts were suspended in 2021, with Meta stating at the time the ban would last at least two years. In July 2024, the company lifted its final restrictions on his accounts in preparation for the US presidential elections.
Zuckerberg and Trump: A Changing Relationship
The settlement marks a shift in the previously tense relationship between Trump and Zuckerberg.
- Past Feud: Trump was highly critical of Zuckerberg and Facebook, calling the platform “anti-Trump” in 2017 and later branding it an “enemy of the people” in 2024.
- Political Reconciliation: After Trump’s 2024 election victory, Zuckerberg visited Mar-a-Lago, signaling a warming relationship.
- Financial Support: Meta later donated $1 million to Trump’s inauguration fund, and Zuckerberg was seated near top tech executives at the January 2025 ceremony.
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Trump’s Return to Social Media
Trump’s social media presence has seen major changes over recent years:
- Facebook & Instagram: Meta reinstated Trump’s accounts in 2024.
- Twitter/X: Originally banned from Twitter in 2021, Trump’s account was restored in 2022 after Elon Musk—who acquired the platform for $44 billion—conducted a user poll supporting his return.
Meta’s AI Push Amid Tech Market Shifts
While resolving its dispute with Trump, Meta also defended its aggressive $65 billion investment in artificial intelligence (AI). The company’s strategy comes amid growing competition, particularly from the sudden rise of Chinese AI app DeepSeek.
Zuckerberg’s AI Strategy
- Global Competition: DeepSeek’s rapid success has raised concerns about US dominance in AI.
- Open-Source Approach: Meta has taken a unique path by offering its AI model for free, a move Zuckerberg believes strengthens US leadership in the field.
- Future Investment: Meta will continue heavy spending on AI, with Zuckerberg calling infrastructure expansion a “major advantage” for future growth.
Meta’s Strong Financial Performance
Despite heavy AI investments, Meta reported robust financial results:
- Q4 2024 revenue: Over $48 billion, a 21% increase from the previous year.
- Net profit: More than $20 billion, up 49% year-over-year.
- Stock performance: Meta’s stock rose in after-hours trading following its earnings announcement.
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Looking Ahead
Zuckerberg outlined key focus areas for 2025, including:
- Smart Glasses Growth: He expects widespread adoption of smart glasses within a decade.
- Reviving Facebook’s Popularity: Efforts are underway to restore Facebook’s relevance amid competition from Instagram and TikTok.
- Ending Fact-Checking: Meta has shifted to a “community notes” system instead, with Zuckerberg stating that advertiser demand remains unaffected.
As Meta navigates political and technological challenges, its AI expansion and changing relationship with Trump signal a pivotal year ahead.
