Meta chief executive Mark Zuckerberg has outlined plans to sharply increase spending on artificial intelligence projects in 2026, committing tens of billions of dollars to AI infrastructure even as senior figures across the tech and finance sectors warn that the industry may be overheating.
AI Spending Set To Nearly Double
Meta said during a call with financial analysts on Wednesday that it expects total spending of up to $135bn, or £97bn, this year, with the majority directed toward AI related infrastructure. The figure represents almost double the $72bn the company spent on AI projects and infrastructure last year.
Over the past three years, Meta has invested roughly $140bn as it seeks to strengthen its position in AI development.
Mark Zuckerberg told analysts he expects 2026 to mark a turning point in how AI reshapes work. He said he believes it will be the year when AI begins to significantly change working practices across industries.
Financial Results And Market Reaction
The comments came alongside Meta’s 2025 financial results, which showed expenses rising faster than revenues in the final three months of the year, putting pressure on profit margins.
Despite those figures, Meta shares rose by around 6.5% in extended trading in New York following the announcement.
Productivity Gains And Workforce Implications
Zuckerberg suggested that advances in AI could reduce the need for large teams on certain projects. He said tasks that previously required sizable groups can now be completed by a single highly skilled individual.
Meta has already laid off several hundred employees this year, largely within its Reality Labs division, which focuses on metaverse related projects, hardware, and AI initiatives.
He said the company is expanding its use of AI tools to support employees, including software engineers, allowing them to complete more work. Zuckerberg said there is a growing gap between workers who effectively use AI tools and those who do not, as productivity gains become more pronounced.
Industry Concerns About An AI Bubble
Meta’s investment plans contrast with growing caution expressed elsewhere in the industry. Chuck Robbins, chairman and chief executive of Cisco Systems, told the BBC that AI could eventually be larger than the internet, but said the current market likely shows bubble like characteristics and that some companies will fail.
Jamie Dimon has said that some of the money flowing into AI will probably be lost. Sundar Pichai has also said there is a degree of irrationality in the current AI boom.
Investor Excitement And Longer Term Outlook
Sam Altman, whose company helped trigger the recent surge of interest in AI, has taken a more direct stance. He said last year that investors as a whole were likely overexcited about AI.
Zuckerberg acknowledged that predicting how organisations will ultimately change is difficult, but said the emergence of AI agents capable of carrying out complex tasks is already having a noticeable effect on how work is done.
Featured image credits: Heute.at
For more stories like it, click the +Follow button at the top of this page to follow us.