Meta’s capital spending on AI has surged so much that its 2026 budget is now estimated between $125 billion and $145 billion. That spike coincides with a Q2 revenue of $60.8 billion, slightly above analyst expectations, but the earnings missed badly at $6.18 per share versus the projected $7.14.
Advertising remains solid for Meta, pulling in $59.3 billion, beating the anticipated $59.07 billion. Yet investors are uneasy as the ballooning capital expenditure mostly funneled into AI data centers, custom chips, and massive computing power continues to weigh down profit margins.
The scale of the AI investment rivals the GDP of some countries, illustrating the massive financial commitment Meta is making. While revenue growth is steady, the company’s soaring costs are squeezing earnings, sparking questions around the sustainability of this AI spending spree.
material is for informational purposes and not financial advice
