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Meta Plans Sharp Increase in AI Spending and Shifts Focus for 2026

lite News Desk 2 min read

At a glance

  • Meta projects 2026 capital expenditures of $115–135 billion
  • Total 2026 expenses expected to reach up to $169 billion
  • Company is reallocating resources from Reality Labs to AI initiatives

Meta Platforms is adjusting its investment strategy for 2026, with a focus on artificial intelligence development and a substantial increase in planned spending compared to the previous year.

The company forecasts capital expenditures between $115 billion and $135 billion for 2026, nearly double the $72 billion spent in 2025. This planned increase reflects a shift in priorities, as Meta redirects resources toward AI infrastructure and talent while reducing emphasis on its Reality Labs division.

Meta expects total expenses for 2026 to range from $162 billion to $169 billion, a rise from approximately $118 billion in 2025. The company is also investing in AI chips, coding tools, and agent platforms, and has acquired a stake in the AI startup Scale AI as part of its broader AI strategy.

CEO Mark Zuckerberg announced that 2026 will be a year of "major AI acceleration" for Meta, with plans to integrate artificial intelligence across platforms such as Facebook, Instagram, and Threads. The company has also made organizational changes to support this direction, including workforce reductions in divisions not central to the new focus.

What the numbers show

  • Meta’s 2025 capital expenditures were about $72 billion
  • Q4 2025 revenue reached approximately $59.9 billion
  • Reality Labs posted a loss of about $19 billion in 2025
  • Net income for Q4 2025 was $22.8 billion, up 9% year-on-year

As part of its restructuring, Meta laid off over 1,000 employees from the Reality Labs division. In 2025, the company also reduced its workforce by about 600 employees in the Meta Superintelligence Labs division. These actions are aligned with the company's move to prioritize artificial intelligence initiatives over other projects.

The Reality Labs division, which focuses on virtual and augmented reality, has continued to report substantial losses. In 2025, this division posted a loss of around $19 billion, contributing to Meta’s decision to shift resources toward AI-related projects and investments.

Meta’s financial results for the fourth quarter of 2025 showed revenue of about $59.9 billion, representing a 24% increase compared to the same period the previous year. Net income for the quarter rose by 9% to $22.8 billion, reflecting continued growth in the company’s core business areas.

The company’s AI investments include new infrastructure, technology partnerships, and the development of proprietary tools. These efforts are intended to support the integration of AI capabilities across Meta’s suite of products and services.

* This article is based on publicly available information at the time of writing.

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