"After a late start, Meta has doubled down on AI, with a target of achieving superintelligence, a theoretical milestone where machines could outthink humans. To that end, it has spent hundreds of billions of dollars to build several massive AI data centers for superintelligence and is planning for bigger financial outlays to meet big compute needs. "There's a range of timelines for when people think that we're going to get superintelligence," CEO Mark Zuckerberg said on a conference call with analysts."
"The social media company now expects capital expenditure between $70 billion and $72 billion this year, compared with its prior forecast of $66 billion to $72 billion. "We anticipate this will provide further upward pressure on our capital expenditures and expense plans next year." Employee compensation costs will be the second largest contributor to the increase in costs, Li said, to account for the compensation of employees hired throughout 2025, particularly AI talent."
Meta forecasts notably larger capital expenditures next year driven by heavy AI investments and plans to expand compute and data center capacity. The company recorded a nearly $16 billion one-time charge tied to President Trump's 'Big Beautiful Bill', which reduced reported third-quarter net income to $2.71 billion; excluding the charge, net income would have been $18.64 billion. Third-quarter revenue grew 26%, but costs rose 33%, pressuring margins. Meta intends to build massive AI data centers and has spent hundreds of billions on that effort. Capital expenditures are now expected between $70 billion and $72 billion this year, with employee compensation also rising due to AI hiring.
Read at New York Post
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