Meta's Bold AI Ambitions Drive New Capital Expenditure Surge

Meta is increasing its annual capital expenditure significantly to build AI infrastructure and has laid off 10% of its Reality Labs staff. The company is investing heavily in data centers and nuclear power to support its AI initiatives, despite challenges and competition in Silicon Valley.

Meta has announced a sharp increase in its annual capital expenditure, as the company aims to build a powerful artificial intelligence infrastructure. This move is part of its pursuit of 'superintelligence', where machines could outperform human capabilities.

The company's share prices fell by about 2% in extended trading, as Meta projects capital expenditures between $115 billion and $135 billion, up from $72.22 billion last year. The company is investing in AI to boost its ad platform, which remains a key growth driver.

Meta is reallocating resources by laying off around 10% of its Reality Labs staff and shifting focus to wearables. Despite internal constraints, the company partners with energy firms for nuclear power and expands its data centers, intensifying its AI efforts amid fierce competition in Silicon Valley.