Meta lifts AI spending floor, plans non-voting shares

Meta raised the minimum it expects to spend on capital investment in 2026 to $135 billion on Wednesday, October 21, while keeping its upper limit at $145 billion. The Facebook and Instagram parent also announced plans for new non-voting shares as it finances an expensive artificial intelligence expansion, according to The Economic Times Markets, citing Reuters.

Third-quarter revenue reached $64.60 billion, exceeding the $63.37 billion Wall Street estimate compiled by LSEG. Meta also forecast fourth-quarter revenue above analysts’ expectations, although the report did not give the guidance range.

Higher spending floor, unchanged ceiling

The revised capital expenditure range of $135 billion–$145 billion replaces an earlier forecast of $130 billion–$145 billion. The change raises the spending floor by $5 billion; it does not increase the maximum projected outlay or represent spending already completed.

Meta has been pouring money into chips and data centres as it competes with OpenAI and Anthropic. That investment is putting pressure on free cash flow. Early uptake of its consumer AI agent, Muse, and the introduction of a new series of AI models have helped support the company's investment case, the report said. Some enterprises, however, are limiting the agent’s access because of security concerns.

New shares could preserve Zuckerberg’s voting control

The proposed non-voting shares could give Meta another way to fund acquisitions and recruit highly sought-after employees without diluting chief executive Mark Zuckerberg’s voting control, Reuters reported. The proposal therefore concerns both financing flexibility and control over the company; it is not a completed share issuance.

Legal costs add to financial pressures

Alongside the earnings update, the report described a substantial legal setback in New Mexico. It said a judge on Wednesday ordered Meta to pay a $25 billion penalty after a jury found that the company had misled state residents about third-party access to user data and its enforcement of hate-speech and misinformation policies. The case was linked to allegations involving British political consultancy Cambridge Analytica. The account did not include Meta’s response to the ruling.

The report also said Meta agreed in August to pay as much as $18 billion over a decade and limit teenagers’ use of Facebook and Instagram to settle claims brought by nearly all US states. Those states had alleged that the platforms were designed to be addictive to children. The agreement avoided a potentially lengthy trial; the allegations should not be treated as findings established by that settlement.

Advertising remains the commercial foundation

Advertising still generates almost all of Meta’s revenue. The company is using AI to refine ad targeting and content recommendations, seeking to increase engagement and strengthen that business. Its Reels format competes with TikTok and YouTube Shorts, while Threads competes with Elon Musk’s X.