Meta Platforms Will Spend $135 Billion on AI in 2026. There Might Only Be 1 Reason Why.
Like its hyperscaler peers, the social media juggernaut is sparing no expense to become a leader in artificial intelligence.
Overview
The market is focused these days on the immense amount of capital flooding the artificial intelligence (AI) build-out. The hyperscalers are getting all the attention as they embark on an extraordinary investment cycle.
Meta Platforms (NASDAQ: META) is one such business. The dominant social media platform, which has historically posted huge profits and free cash flow, plans to spend $125 billion to $145 billion on capital expenditures (capex) in 2026, mostly for AI infrastructure. That upper bound is about double the $72 billion figure from last year.
Details
Investors are probably wondering why Meta is transitioning from a capital-light business to a capital-intensive one. There might only be one reason.
Source
Originally published at www.fool.com.
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