Meta Could Spend $145 Billion This Year Due to AI
Meta reported a 33% revenue increase but saw its shares drop over 7% due to a significant upward revision in capital expenditures, with plans to spend up to $145 billion in 2026, largely driven by rising AI-related costs such as memory chips. CEO Mark Zuckerberg emphasized confidence in the AI investment, citing progress with new models like Muse Spark and internal AI integration in content translation, ads, and recommendation systems. Despite ongoing losses in its Reality Labs division, Meta is shifting focus toward AI, including developing personal and business AI agents, while implementing workforce reductions reportedly tied to AI automation.
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Wednesday was a big day for the tech industry with Meta, Google, Amazon and Microsoft all reporting earnings at the same time in the afternoon. Out of the four, though, Meta was the clear loser with its shares down more than 7% even though revenue increased 33% this past quarter, the company’s fastest since 2021.cnx.cmd.push(function(){cnx({"playerId":"92b7b46b-43ed-4e0e-b21b-2c999302d9d7","settings":{"advertising":{"macros":{"AD_UNIT":"/23178111854/od.gizmodo.com/article","CHILD_UNIT":"article","POST_ID":"2000752323","POST_TYPE":"post","CHANNEL":"tech","SECTION":"social-media","SUBSECTION":"","CATEGORIES":"artificial-intelligence,social-media","TAGS":"artificial-intelligence,mark-zuckerberg,meta","NOP":"0"},"timeBeforeFirstAd":0}}}).render("cnx-player-main")}); It’s probably because the…
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