Meta Platforms (META) is investing significantly in AI infrastructure, having entered into a deal with AMD for 6 gigawatts (GWs) of Instinct GPUs, which will use custom MI450 and 6th-generation EPYC CPUs. This partnership is part of a broader strategy to enhance their data centers, crucial for developing AI capabilities and improving user experiences. Additionally, META has signed long-term nuclear power agreements expected to supply 6.6 GWs of electricity by 2035.
In terms of financial commitments, Meta anticipates capital spending between $115 billion to $135 billion in 2026. Collectively, major tech firms including Alphabet, Amazon, and Microsoft are expected to spend about $700 billion developing AI infrastructure by that year. META’s revenue for the first quarter of 2026 is projected to be between $53.5 billion and $56.5 billion, alongside an earnings consensus estimate of $6.67 per share, indicating a 3.7% year-over-year growth.
Despite facing tough competition from Alphabet and Amazon in the advertising sector, which are leveraging AI to enhance ad performance, Meta’s AI-driven features are expected to boost user engagement across its platforms.
