Meta Raises 2026 AI Capex Floor to $135 Billion as Q3 Revenue Hits Record

Social media giant Meta Platforms disclosed that it has raised the lower end of its 2026 capital expenditure (Capex) forecast to $135 billion from $130 billion, while keeping the upper bound unchanged at $145 billion. This adjustment reflects the company's accelerating investment in artificial intelligence infrastructure, custom chips, and data centers. According to a report by Proactive Investors, Meta's third-quarter revenue reached $64.6 billion, surpassing Wall Street expectations of approximately $63.4 billion, indicating that its core Facebook and Instagram advertising business continues to generate sufficient cash to support its massive AI ambitions.

Despite strong revenue, this scale of capital expenditure is reshaping Meta's financial profile. As data center construction and computing costs rise, the enormous free cash flows historically generated by social apps are coming under pressure. CEO Mark Zuckerberg has reorganized significant parts of the business around AI, attempting to compete directly with OpenAI, Google, and Anthropic. Beyond improving existing advertising systems, Meta is building standalone AI products, aiming to create new revenue streams beyond traditional advertising in the future.

Meta is far from alone. Technology giants like Microsoft, Alphabet, and Amazon have also committed hundreds of billions of dollars to AI-related infrastructure, creating enormous demand for semiconductors, electricity, and networking equipment. However, this expansion has raised concerns about whether grid infrastructure can be built quickly enough to keep pace with projected computing demand. For Meta, the central question remains whether spending approaching $145 billion a year will establish a durable competitive advantage or eventually become a drag on shareholder returns. Currently, strong revenue growth provides some buffer space.