Meta Slashes Employee Equity For Second Year As It Boosts AI Spending

Tech giant reallocates billions to fund $135 billion 'Superintelligence' infrastructure

Published on Feb. 27, 2026

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Meta Platforms Inc. has reduced annual stock awards for the majority of its workforce by approximately 5%, marking the second consecutive year of equity cuts as the company reallocates billions toward Artificial Intelligence. The move comes as CEO Mark Zuckerberg prepares for a massive infrastructure expansion, with 2026 capital expenditure projected to reach a record-high range of $115 billion to $135 billion. The savings are being funneled directly into 'Meta Superintelligence Labs,' a core initiative aimed at developing AI that can outperform human capabilities.

Why it matters

Meta's pivot to AI has led to internal restructuring, including layoffs in its Reality Labs division, as the company shifts resources away from virtual reality toward AI-powered wearables and 'personal superintelligence' products. This strategic shift reflects the company's ambition to dominate the emerging AI landscape, even if it means making tough decisions that impact employee compensation.

The details

The reduction in employee compensation, first reported by the Financial Times, follows a more substantial 10% cut to stock grants last year. Meta's $135 billion spending goal is primarily driven by the construction of gigawatt-scale data centers, which Zuckerberg describes as having the 'energy footprint of a small city' and are essential for the computational power required by next-generation AI.

  • Meta reduced employee stock awards by approximately 5% in 2026.
  • Meta reduced employee stock awards by 10% in 2025.

The players

Meta Platforms Inc.

A technology company that owns social media platforms including Facebook, Instagram, and WhatsApp.

Mark Zuckerberg

The co-founder and CEO of Meta Platforms Inc.

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What they’re saying

“This is going to be a big year for delivering personal superintelligence.”

— Mark Zuckerberg, CEO (Meta Platforms Inc.)

What’s next

Meta's massive investment in AI infrastructure and 'Superintelligence' initiatives will likely have significant implications for the company's future direction and the broader technology landscape.

The takeaway

Meta's strategic pivot to AI, even at the expense of employee compensation, underscores the company's ambition to dominate the emerging AI market and position itself as a leader in the development of transformative technologies that could reshape the future of computing and beyond.