Meta to boost AI spending as ad business lifts revenue
Facebook parent company Meta says it is sharply increasing spending on artificial intelligence (AI) infrastructure, boosted by strong growth in its advertising business.
For this year, Meta has forecast capital spending between US$115 billion and US$135 billion. In 2025, the company spent approximately $72 billion to expand its data centers, primarily for AI.
Chief executive Mark Zuckerberg has ambitious plans to leave behind rivals like Google and Elon Musk’s company xAI, as well as ChatGPT developer OpenAI, in the AI race.
It is willing to spend billions of dollars even at the risk of building excessive data center capacity. Speaking on a conference call with analysts, Zuckerberg again expressed confidence that the AI business is now gaining strong momentum.
Funding for AI expansion continues to come largely from Meta’s burgeoning advertising business on platforms like Facebook and Instagram. Revenue rose 24 percent year over year to nearly $59.9 billion in the latest quarter, beating analysts’ expectations. Net profit rose nine percent to $22.77 billion.
At least one Meta app is now used by 3.58 billion people every day; This represents a seven percent increase compared to the previous year. Meta’s portfolio includes messaging application WhatsApp and Threads, a rival of Elon Musk’s social media platform X.
While the company’s planned capital expenditure for this year exceeded analysts’ expectations, its revenue outlook of between US$ 53.5 billion and US$ 56.5 billion for the current quarter was also above the average market estimate.
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