Former U.S. President Donald Trump has reached a legal settlement with Meta, the parent company of Facebook and Instagram, for approximately $25 million (£20 million). The settlement stems from Trump’s lawsuit against Meta following the suspension of his social media accounts after the January 6 Capitol riots in 2021.
Background of the Lawsuit
Trump sued Meta and its CEO, Mark Zuckerberg, in 2021, arguing that the ban was unjust. The company had suspended his accounts, stating that he would be banned for at least two years. However, in July 2024, Meta lifted all remaining restrictions on Trump’s accounts ahead of the U.S. presidential elections.
Settlement Details
- Around $22 million of the settlement will go toward Trump’s presidential library fund.
- The remaining amount will cover legal fees and compensate other plaintiffs who joined the lawsuit.
- Meta has not admitted any wrongdoing as part of the settlement.
Trump and Zuckerberg’s Changing Relationship
Over the years, Trump has frequently criticized Zuckerberg and Facebook, calling the platform “anti-Trump” in 2017. Tensions escalated further after the 2021 ban, with Trump labeling Facebook an “enemy of the people” in 2024.
However, after Trump’s election victory in November 2024, Zuckerberg visited Trump’s Mar-a-Lago resort, signaling a shift in their relationship. The following month, Meta donated $1 million to Trump’s inauguration fund, and Zuckerberg attended the ceremony, seated near other tech billionaires.
Meta’s Focus on AI and Market Trends
On the same day the settlement was reported, Meta defended its $65 billion investment in artificial intelligence (AI). The company faces competition from the Chinese AI app DeepSeek, which has rapidly gained popularity at a fraction of the cost of U.S. rivals.
Meta has taken a different approach to AI by making its model open-source. Zuckerberg emphasized that this strategy would help maintain U.S. leadership in AI innovation.
Meta’s Financial Performance
Despite heavy AI investments, Meta’s financial results exceeded expectations:
- Revenue in the last quarter of 2024 reached over $48 billion, a 21% increase from the previous year.
- Net profit rose by 49%, totaling more than $20 billion.
- Meta’s stock price rose in after-hours trading, defying the trend of declining tech stocks.
Future Plans for Meta
Zuckerberg outlined key priorities for the company, including:
- Expanding AI infrastructure with a $65 billion investment.
- Reviving Facebook’s cultural relevance amid competition from Instagram and TikTok.
- Phasing out traditional glasses in favor of smart glasses within the next decade.
- Ending fact-checking efforts in favor of community-driven content moderation.
Conclusion
The $25 million settlement marks the resolution of a high-profile dispute between Trump and Meta. While Meta continues its push into AI, its evolving relationship with Trump reflects broader shifts in the political and technological landscape.
