Meta Platforms Announces Significant AI Spending Increase
On October 2023, Meta Platforms (NASDAQ: META) announced plans to significantly boost its capital expenditures in 2026, with a projected budget of $135 billion, marking an 87% increase from the previous year. This funding aims to enhance the company’s AI capabilities, particularly through its AI Superintelligence team, following a $14 billion investment in Scale AI to acquire a 49% stake in the firm.
As part of this strategy, Meta’s depreciation expense is increasing, having risen 20% in 2025, with expectations of further growth in 2026. The company reported a decline in its operating margin from 48% in Q4 2024 to 41% in 2025, despite overall expected growth in operating income driven by robust revenue, which grew 24% in the fourth quarter due to successful user engagement and ad price increases.
Meta aims to leverage generative AI to attract more advertisers by enhancing user engagement and personalizing content across its platforms. As a leader in the AI sector, Meta’s strategic investments are positioned to yield substantial long-term benefits.
