Meta 2026 Q1 Earnings: AI Investment Rises to $145 Billion

Meta announced in its Q1 2026 earnings report that it has increased its capital expenditures (capex) in artificial intelligence (AI) to $145 billion. This increase is seen as part of the company's long-term strategic investment plans in AI technologies. The company's revenues exceeded expectations, driven by strong growth in advertising revenue. Increased user engagement on Meta's social media platforms contributed to higher advertiser spending. While the majority of AI investments are allocated to data centers and infrastructure development, the company is also focusing on AI models to improve content recommendation systems. These expenditures are expected to pressure profitability in the short term. Meta's shares edged higher in after-hours trading as investors focused on growth potential despite rising costs. Analysts suggest that AI investments could provide a competitive advantage in the long run. This is not investment advice.