Meta Raises AI Spending Outlook to $145 Billion as Muse Gains Momentum

 Meta raises its 2026 capital expenditure outlook to as much as $145 billion as its Muse AI assistant gains users. Investors face a growing question over spending and profitability.

Meta is doubling down on artificial intelligence, with its latest earnings revealing just how expensive that ambition has become.

The technology giant reported third-quarter revenue of $64.6 billion, up 26% from a year earlier, while raising the lower end of its 2026 capital expenditure forecast to $135 billion. The upper end remains $145 billion.

Much of that investment supports Meta's expanding AI infrastructure and its new assistant, Muse, which has attracted more than 10 million users across the US and Canada in its first six weeks.

Meta also announced plans to introduce non-voting Class C shares in January 2027, adding another dimension to its financing strategy.

Growth comes at a price

Despite stronger revenue, Meta's operating income fell 37% to approximately $13 billion as expenses surged. Quarterly free cash flow also turned negative.

The challenge is turning AI engagement into profitable services while maintaining the strength of its advertising business.

Investor Take: Meta's AI ambitions are gaining traction, but the scale of spending raises the stakes.

Investors should watch Muse adoption, advertising performance and future cash flow. Strong revenue growth offers some reassurance, but Meta must demonstrate that its enormous AI investments can generate sustainable returns.