Meta Raises 2026 AI Infrastructure Spending to $145 Billion

Meta Platforms increased its 2026 capital expenditure budget to a range between $125 billion and $145 billion, marking a $10 billion rise at both ends of the estimate since April. The company is prioritizing artificial intelligence infrastructure and the deployment of more than a gigawatt of custom chips developed in collaboration with Broadcom Inc.

Despite the aggressive spending targets, the company reported $19.8 billion in capital expenditures and $12.4 billion in free cash flow during the first quarter. Chief Financial Officer Susan Li noted that compute capacity is essential for powering more capable models and delivering new products.

Investors have reacted with skepticism toward the high costs, and the stock has fallen 3.4% on Thursday, trading 24% below its 52-week high. Markets are awaiting the second-quarter report on July 29 to determine if these AI investments are improving advertising results and driving revenue growth.