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Meta Forecasts Spending of at Least $115 Billion This Year
The tech giant plans to dramatically increase its investment in AI infrastructure and talent.
Jan. 28, 2026 at 5:07pm
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Meta, the parent company of Facebook, Instagram, and WhatsApp, has announced plans to dramatically increase its capital expenditure forecast for 2026 to between $115 billion and $135 billion. This is nearly twice the $72 billion the company spent last year, with much of the new spending going towards building computing facilities to power AI and hiring researchers to develop a 'superintelligent' AI model.
Why it matters
Meta's massive investment in AI reflects the intense competition in the artificial intelligence race, with tech giants vying to develop the most advanced and capable AI systems. This spending spree comes as Meta looks to stay competitive with rivals like Google, which spent $93 billion on AI last year. The success of Meta's new AI model, codenamed Avocado, will be a key test of the company's recent AI-focused investments.
The details
Meta plans to shift away from virtual reality and focus more on AI development. The company has already made significant investments, including a $14.3 billion deal to acquire AI data labeling startup Scale AI and the appointment of Alexandr Wang as its new Chief AI Officer. Meta has also created a new group, TBD Lab, to develop its next-generation AI model, Avocado, which is expected to be released in the first half of this year.
- In June 2025, Meta invested $14.3 billion in Scale AI, an AI data labeling startup.
- Meta's new AI model, Avocado, is expected to be released in the first half of 2026.
The players
Meta
The parent company of Facebook, Instagram, and WhatsApp, which is heavily investing in AI development to stay competitive in the artificial intelligence race.
Alexandr Wang
The new Chief AI Officer at Meta, appointed after the company's acquisition of Scale AI.
Nat Friedman
The former CEO of GitHub, who is now leading Meta's new TBD Lab group focused on developing the company's next-generation AI model, Avocado.
Yann LeCun
Meta's former Chief AI Scientist, who recently criticized US tech companies for being too focused on large language models.
Dina Powell McCormick
The new President and Vice Chairman of Meta Compute, the company's initiative to build data centers to power its AI efforts.
What they’re saying
“We had strong business performance in 2025. I'm looking forward to advancing personal superintelligence for people around the world in 2026.”
— Mark Zuckerberg, Chief Executive Officer, Meta
“The benefits of A.I. have to keep up with the rate of the spending.”
— Uday Cheruvu, Portfolio Manager, Harding Loevner
What’s next
Meta's new AI model, Avocado, is expected to be released in the first half of 2026. How it performs against models from competitors like Google and OpenAI will be a key test of the company's recent AI investments.
The takeaway
Meta's massive investment in AI infrastructure and talent reflects the intense competition in the artificial intelligence race, as tech giants race to develop the most advanced and capable AI systems. The success of Meta's new AI model, Avocado, will be a crucial indicator of whether the company's AI-focused strategy is paying off.
