Meta targets $145 billion in 2026 capex for AI infrastructure, outpacing peers and exploring cloud computing to monetize excess capacity.
Meta Platforms will allocate $145 billion in capital expenditures for AI infrastructure in 2026, exceeding spending by Microsoft, Alphabet, and Amazon. CEO Mark Zuckerberg indicated the company may launch a cloud computing business to compete with AWS, Google Cloud, and Microsoft Azure, leveraging excess capacity from its AI buildout.
The company generated $45 billion in free cash flow over the past four quarters, supporting the expansion without straining its balance sheet. Meta previously spent $70 billion on metaverse initiatives with limited returns but now bets on AI infrastructure as a profitable platform, mirroring the rise of cloud computing a decade ago.
Investors are weighing whether the aggressive spending will yield sustainable returns, as Meta shifts from a social media focus to an AI hyperscaler.