Meta told investors it will spend even more on artificial intelligence this year, narrowing its capital-expenditure forecast for 2026 by lifting the floor rather than the ceiling.
The company now expects to spend between $130 billion and $145 billion, up from a prior range that started at $125 billion, roughly double what it laid out a year earlier.
The spending is landing on a fast-growing business. Meta reported second-quarter revenue of $60.8 billion, up 28% from a year earlier, its quickest growth since late 2021, as advertising held up and AI-tuned recommendations kept users scrolling.
The advertising engine did the heavy lifting. Better AI recommendations lifted engagement across Instagram and Facebook, and a stronger ad market let Meta turn that extra attention into its fastest revenue growth in years.
The 💜 of EU techThe latest rumblings from the EU tech scene, a story from our wise ol' founder Boris, and some questionable AI art. It's free, every week, in your inbox. Sign up now!What the growth is not doing is reaching the bottom of the cash statement. Free cash flow fell to $784 million, down 91% from $8.55 billion a year earlier, a collapse that shows how completely the AI build-out is swallowing the money the ads business throws off.
