President Donald Trump has signed a legal settlement that will see Meta, the parent company of Facebook and Instagram, pay $25 million after suspending his accounts in 2021. The deal, first reported by the Wall Street Journal, comes after Trump sued Meta and CEO Mark Zuckerberg over the ban following the January 6 Capitol riots.
Meta’s payout and Trump’s library fund
Under the terms of the settlement, around $22 million will go to a fund for Trump’s presidential library, while the remaining amount will cover legal costs and other plaintiffs in the lawsuit. Meta will not admit to any wrongdoing.
The social media giant initially suspended Trump’s accounts for at least two years, citing policy violations. Restrictions were lifted in July 2024 ahead of the U.S. presidential election, restoring his access to Facebook and Instagram.
The lawsuit’s resolution marks a shift in relations between Trump and Zuckerberg. Once a vocal critic of Facebook, Trump had previously called the platform “anti-Trump” and, in 2024, labeled it an “enemy of the people.” However, Zuckerberg’s recent visit to Mar-a-Lago and Meta’s $1 million donation to Trump’s inauguration fund suggest a thaw in tensions.
The broader impact on tech and AI
Meta’s settlement coincides with a major shakeup in the tech industry, as its stock climbed following stronger-than-expected earnings. While U.S. tech stocks took a hit after the Chinese AI startup DeepSeek’s rise, Meta’s market performance remained strong.
Zuckerberg defended Meta’s $65 billion AI investment, arguing that embracing open-source AI is crucial for U.S. leadership in the industry. “There’s going to be an open-source standard globally, and I think for our own national advantage, it’s important that it’s an American standard,” he told investors.
Facebook’s comeback and future tech investments
Zuckerberg also addressed Meta’s push to revive Facebook’s cultural relevance, improve smart glasses sales, and reshape its fact-checking policies. The company recently eliminated fact-checking in favor of community-driven moderation, a decision Zuckerberg said has not impacted advertising demand.
Despite heavy AI spending, Meta posted $48 billion in revenue for the last quarter of 2024, a 21% increase from the previous year, with profits soaring 49% to over $20 billion.
