Meta to boost AI spending as ad business lifts revenue

Facebook parent company Meta says it's sharply ramping up spending on artificial intelligence (AI) infrastructure, supported by strong growth in its advertising business.

For the current year, Meta projected capital expenditure of between $US115 billion and $US135 billion. In 2025, the company spent around $US72 billion, primarily on expanding data centres for AI.

Chief executive Mark Zuckerberg has ambitious plans to outpace rivals such as ChatGPT developer OpenAI, as well as Google and Elon Musk's company xAI, in the AI race.

He is willing to spend billions of dollars, even at the risk of building excess data-centre capacity. Speaking on a conference call with analysts, Zuckerberg again voiced confidence that the AI business is currently gaining strong momentum.

Funding for the AI expansion continues to come largely from Meta's booming advertising business across platforms such as Facebook and Instagram. Revenue jumped 24 per cent year-on-year to nearly $US59.9 billion in the last quarter, exceeding analysts' expectations. Net profit rose nine per cent to $US22.77 billion.

At least one Meta app is now used daily by 3.58 billion people, up seven per cent from a year earlier. Meta's portfolio includes messaging app WhatsApp and Threads, a rival to Elon Musk's social media platform X.

The company's planned investment spending for the year exceeded analysts' expectations, while its revenue outlook of $US53.5 billion to $US56.5 billion for the current quarter also topped the average market forecast.