Meta Platforms Increases AI Spend and Considers Equity Sale

Meta Platforms Inc. increased its 2026 capital expenditure guidance to between $125 billion and $145 billion to accelerate the development of artificial intelligence. This spending surge follows the appointment of Alexandr Wang to lead AI efforts and the subsequent April release of Muse Spark, the first major model from the company's TBD Lab.

On June 5, 2026, the company's stock fell more than 6% following reports that it is considering a new equity sale of tens of billions of dollars to fund AI infrastructure. This potential move mirrors a record $85 billion share sale by Alphabet Inc. While a spokesperson described these reports as speculation, the company has recently halted share buybacks and borrowed $55 billion, including a $27 billion bond sale for the Hyperion data center.

Despite a 21% drop in share price from its August peak, Meta reports measurable returns through AI-powered ad tools, with Q1 2026 ad revenue rising 33% to $55 billion. The company is also diversifying revenue through AI-powered wearables and the Meta One subscription umbrella. CEO Mark Zuckerberg suggested that Meta may eventually sell excess computing capacity to other AI firms to compensate for its lack of a dedicated cloud business.