Ask Onix
Meta ramps up AI investment despite profit squeeze
Mark Zuckerberg's company plans to spend up to $135bn on artificial intelligence this year-nearly double its 2025 outlay-as the Facebook owner bets on AI transforming work by 2026.
Record spending drives share surge
Meta disclosed the spending plan during a Wednesday earnings call, revealing a $135bn budget for AI infrastructure in 2026. The figure dwarfs last year's $72bn allocation and brings the company's three-year AI investment to roughly $140bn.
Despite expenses outpacing revenue growth and compressing profit margins in Q4 2025, Meta's shares rose 6.5% in after-hours trading following the announcement.
Zuckerberg predicts AI-driven workplace revolution
Zuckerberg told analysts he expects 2026 to be a "breakthrough year" for AI, with tools enabling small teams-or even individuals-to achieve what previously required large groups. He cited internal AI assistants boosting engineer productivity, though he acknowledged a widening gap between high and low performers.
"It's very hard to predict exactly how this reshapes organizations, but the fact that AI agents are now functional is profound."
Mark Zuckerberg, Meta CEO
Layoffs and shifting priorities
Meta has already cut hundreds of jobs in 2026, primarily in its Reality Labs division, which houses metaverse and hardware projects. Zuckerberg framed the layoffs as part of a broader pivot toward AI-driven efficiency.
Industry leaders warn of AI bubble
While Meta accelerates spending, executives at rival firms caution against over-optimism. Cisco CEO Chuck Robbins told the BBC that AI's potential may exceed the internet's impact, but the current market resembles a bubble, with some companies unlikely to survive.
JPMorgan Chase's Jamie Dimon and Google's Sundar Pichai have echoed concerns about "irrational exuberance," while OpenAI's Sam Altman bluntly stated last year that investors are "overexcited" about AI.
Balancing ambition and risk
Meta's push reflects a high-stakes gamble: that AI will justify its massive costs before market sentiment shifts. Analysts note the company's ability to absorb losses, but warn that missteps could leave it exposed if the bubble bursts.
