Overview
- Meta raised its 2026 investment outlook to $125–145 billion, largely for AI hardware and data centers, after reporting a stronger first quarter, and the stock fell more than 6% in late trading.
- Net income reached $26.8 billion for the quarter, helped by an $8 billion tax benefit, while ad sales grew as Meta folded new AI models into Facebook, Instagram, WhatsApp, and other products.
- Mark Zuckerberg said pricier components such as memory chips are driving the larger budget, and he argued the spending will sharpen ad targeting and lift revenue.
- To help fund the buildout, Meta recently told staff it will cut 8,000 jobs and drop 6,000 open roles, a step HR chief Janelle Gale described as improving efficiency to offset AI investments.
- Meta is committing to massive infrastructure, including a multiyear AMD agreement worth at least $60 billion for millions of chips, in a broader industry shift that favors scarce AI and infrastructure skills over routine and junior roles.