US EditionMeta Leans on Improved ad Business to Fuel Massive AI Spending
Meta plans $115 billion to $135 billion in capital expenditures for AI and infrastructure, leveraging a 24% revenue increase driven by its advertising platforms, the company said.
- Thursday, Meta Platforms Inc. reported fourth-quarter sales of $59.9 billion, beating $58.4 billion and guiding $53.5 billion to $56.5 billion for Q1.
- Fueled by booming ads across Facebook and Instagram, Mark Zuckerberg, Chief Executive, is front-loading computing capacity and pledged a $600 billion U.S. AI investment by 2028.
- The company set full-year capital expenditures at $115 billion to $135 billion, exceeding the $110.6 billion analyst estimate, while Reality Labs recorded over $6 billion in Q4 losses and more than $19 billion in 2025 after about 10 per cent staff cuts.
- Shares rose in after-hours trading after the results, reflecting investor reward for ambitious spending, but analysts warned the share reaction could cool as investors absorb aggressive plans.
- Meanwhile, the AI spending wave is boosting hardware suppliers Samsung and SK Hynix while reallocating memory to high-bandwidth memory, tightening supply and driving chip demand into 2026.
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14 Articles
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Meta leans on improved ad business to fuel massive AI spending
Meta Platforms Inc.'s better-than-expected sales outlook helped ease Wall Street concerns about plans for unprecedented spending on artificial intelligence this year. The social networking giant topped projections for holiday quarter revenue and gave a strong forecast for the current period during its earnings report on Jan. 28. Improvements in its online advertising business are making it possible for Meta to spend hundreds of billions of dolla…
The Canberra Times
The West AustralianMeta to boost AI spending as ad business lifts revenue
For the current year, Meta projects capital expenditure of between $US115 billion and $US135 billion.
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