Facebook’s parent company Meta Platforms announced Wednesday it will increase spending on artificial intelligence infrastructure, raising its projected capital expenditure for 2026 despite ongoing plans for employee layoffs.
The social media giant now anticipates spending between $125 billion and $145 billion in 2026, marking an increase from its previous estimate of $115 billion to $135 billion.
This announcement follows recent reports about Meta’s upcoming workforce reductions, as CEO Mark Zuckerberg works to weave artificial intelligence technology throughout the company’s operations and restructure staffing around these new capabilities.
The company behind Instagram, WhatsApp and Threads has been investing heavily in AI systems and offering competitive salaries to attract talent, particularly for its Meta Superintelligence Labs division, which unveiled its inaugural AI model named Muse Spark this month.
Meta’s advertising platform continues to drive revenue growth, enabling the company to fund these substantial AI investments. The platform helps businesses automate and customize their marketing campaigns effectively.
The company’s Advantage+ advertising automation system operates using several AI technologies, including the Andromeda ad-retrieval system, Lattice ranking framework, and GEM generative recommendation engine. These tools have helped Meta draw more advertisers despite global economic uncertainties stemming from Middle East tensions.
Meta introduced advertising capabilities to WhatsApp messaging and Threads microblogging services last year, creating increased rivalry with platforms such as Elon Musk’s X. At the same time, Instagram’s Reels feature competes directly with TikTok and YouTube Shorts for dominance in the profitable short-form video space.
Research firm Emarketer projects Meta will surpass Alphabet as the world’s largest online advertising company for the first time, anticipating $243.46 billion in global net advertising revenue this year, excluding traffic acquisition expenses. The forecast places Google and YouTube’s parent company at $239.54 billion in annual advertising income.
The company recently expanded access to its Meta AI business assistant tool, created to help advertisers improve campaign results and address technical problems through immediate support.
Meta has begun installing monitoring software on employee computers in the United States to record mouse activity, clicks and keyboard inputs for AI model training purposes, according to recent reports. This initiative represents part of a broader effort to develop AI systems capable of completing workplace tasks independently.
Chinese authorities mandated Monday that Meta dissolve its acquisition of AI startup Manus, valued at over $2 billion, as Beijing increases oversight of American investments in domestic companies developing advanced technologies.
