Yuan CEO Mark Zuckerberg plans to increase the company’s spending on artificial intelligence in 2026. Wall Street appears pleased with the plan.

in its Fourth Quarter Earnings Report On Wednesday, Meta achieved both revenue and profit breakthroughs and also revealed that capital expenditures related to artificial intelligence this year will be between $115 billion and $135 billion. That’s nearly double Meta’s capital expenditures last year, when the company Improved artificial intelligence unit.

Although investors have previously expressed concerns Meta’s AI spending boomthey were pleased with the company’s latest results, which showed revenue rising 24% year-on-year, driven by online advertising. Meta shares, which have lagged the broader market last year, rose 10% in after-hours trading.

“As we plan for the future, we will continue to make significant investments in infrastructure to train leading models and deliver personal superintelligence to billions of people and businesses around the world,” Zuckerberg told analysts during an earnings call.

Zuckerberg refers to Meta’s ambitious goals Data center expansion Designed to anchor current and future AI projects.

Meta Finance CEO Susan Li told analysts that the company remains “capacity constrained,” meaning it needs more computing power to further improve its core advertising business while also providing its artificial intelligence team with the necessary resources to create more advanced models and products.

“Our team has done a great job ramping up our infrastructure through 2025, but demand for computing resources across the company is growing even faster than our supply,” Li said.

Zuckerberg said 2026 will be a big year for artificial intelligence, and Meta’s investment is designed to support his mission to “build artificial intelligence.” personal superintelligence“.

Whether Meta will generate significant revenue from new AI products remains a major question that Zuckerberg has yet to clearly answer.

“I mean, we’re going to launch new products this year,” Zuckerberg said on the call. “I think it’s important that we’re not just launching one thing, but that we’re building a lot of things.”

Perhaps Zuckerberg’s biggest shift last year was Investment of US$14.3 billion Scale AI founder and CEO Alexandr Wang came to Meta along with some of his top engineers and researchers. Wang now leads Meta’s TBD AI division, which has been testing code-named avocado This is the company’s successor Llama series modelsCNBC reports.

“I expect our first model to be good, but more importantly, it’ll show the rapid trajectory we’re on,” Zuckerberg said Wednesday. “Then, I expect that as we continue to release new models, we’ll steadily push the frontier forward over the course of the year.”

Asked on the conference call why Meta needed to develop its own powerful AI foundation model, Zuckerberg said it was important because Meta is a “deep technology company.”

Meta cannot risk being “constrained by what others in the ecosystem are building or allowing us to build,” he said, adding that controlling the model allows you to help “shape the future of these products.”

Meanwhile, online advertising still accounts for the vast majority of Meta’s revenue. As long as the business continues to dominate mobile, beat expectations and pump out billions of dollars in cash each quarter, Zuckerberg will likely have plenty of leeway to pursue his AI ambitions.

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