Meta Could Spend $145 Billion This Year Due to AI
Wednesday was a big day for the tech industry with Meta, Google, Amazon and Microsoft all reporting earnings at the same time in the afternoon. Out of the four, though, Meta was the clear loser with its shares down more than 7% even though revenue increased 33% this past quarter, the company’s fastest since 2021.
It’s probably because the company upped its already outrageous spending expectations for the year. Meta said that 2026 capital expenditures would be at least $10 billion more than expected and could top $145 billion. While emphasizing his “confidence in this investment,” CEO Mark Zuckerberg said that most of this increase was due to “higher component costs, particularly memory pricing.”
The AI boom has led to an unprecedented data center buildout that has constrained the global memory chip supply and increased prices for these valuable chips. The result has been a global memory crisis that has impacted not only Meta and the rest of the AI industry but also caused the prices of consumer electronics like laptops and smartphones to soar.
Meta’s $145 billion is a dramatic increase from the $72 billion capital expenditure it recorded just last year, and Zuckerberg is betting it all on an AI turnaround effort.
Meta has been left behind in the AI race as industry rivals like Google have soared past. Roughly 10 months ago, Zuckerberg acknowledged the situation and announced a major catch-up effort that saw him commit billions upon billions of dollars to research and development, and to poach talent from all over the industry, including bringing in Scale AI’s founder Alexandr Wang to lead the new Meta Superintelligence Labs AI division.
Many have been reasonably nervous about this commitment, considering that the company’s latest big bet in emerging tech, the Metaverse, has flopped dramatically. In Wednesday’s earnings report, Meta said that the Reality Labs division, which had helmed the Metaverse efforts, notched an operating loss of more than $4 billion, while only cashing in $402 million in sales. That adds to the whopping $80 billion and more the division has lost in the past six years.
But experts are somewhat more hopeful about the AI bet because, earlier this month, the tech giant debuted the first fruits of that investment with the AI model Muse Spark, a proprietary model that the company plans to open-source in the future. It’s a step in the right direction, but Meta still has to do more before it can confidently say the catch-up effort is successful.
“This was the first release from Meta Superintelligence Labs, and it shows that our work is on track to build a leading lab,” Zuckerberg assured investors in the company’s earnings call. “Now that we have a strong model, we can develop more novel products as well.”
Those novel products will include two agents, one for personal and the other for business uses, according to Zuckerberg.
“We’re already testing an early version of business AIs and weekly conversations have grown 10x since the start of this year,” Zuckerberg said.
One way that AI is clearly showing up to benefit Meta is internally. Meta CFO Susan Li said that over half a billion users weekly on Facebook and Instagram each are now watching videos translated and dubbed by AI. The company is also incorporating the new AI model into parts of its core business, like ads, and particularly into its recommendation system. The goal is to have the AI hyper-personalize feeds for users.
“Since our recommendation systems are operating at such large scale, we’ll phase in this new research and technology over time,” Zuckerberg said. “But the trend over the last few years seems clear that we are seeing an increasing return on the amount that we can improve engagement for people and value for advertisers.”
AI is also taking over internally at Meta. The company is laying off 10% of its workforce and reportedly offering voluntary buyouts to 7% of its U.S. staff, in what seems to follow a purportedly AI-driven trend that has taken Silicon Valley by storm.
On the call, executives wouldn’t say if the layoffs had to do with automation of jobs, but Li did say that a “leaner operating model” would help “offset the substantial investments we’re making.”
#Meta #Spend #Billion #Year #DueArtificial intelligence,Mark Zuckerberg,Meta
Wednesday was a big day for the tech industry with Meta, Google, Amazon and Microsoft all reporting earnings at the same time in the afternoon. Out of the four, though, Meta was the clear loser with its shares down more than 7% even though revenue increased 33% this past quarter, the company’s fastest since 2021.
It’s probably because the company upped its already outrageous spending expectations for the year. Meta said that 2026 capital expenditures would be at least $10 billion more than expected and could top $145 billion. While emphasizing his “confidence in this investment,” CEO Mark Zuckerberg said that most of this increase was due to “higher component costs, particularly memory pricing.”
The AI boom has led to an unprecedented data center buildout that has constrained the global memory chip supply and increased prices for these valuable chips. The result has been a global memory crisis that has impacted not only Meta and the rest of the AI industry but also caused the prices of consumer electronics like laptops and smartphones to soar.
Meta’s $145 billion is a dramatic increase from the $72 billion capital expenditure it recorded just last year, and Zuckerberg is betting it all on an AI turnaround effort.
Meta has been left behind in the AI race as industry rivals like Google have soared past. Roughly 10 months ago, Zuckerberg acknowledged the situation and announced a major catch-up effort that saw him commit billions upon billions of dollars to research and development, and to poach talent from all over the industry, including bringing in Scale AI’s founder Alexandr Wang to lead the new Meta Superintelligence Labs AI division.
Many have been reasonably nervous about this commitment, considering that the company’s latest big bet in emerging tech, the Metaverse, has flopped dramatically. In Wednesday’s earnings report, Meta said that the Reality Labs division, which had helmed the Metaverse efforts, notched an operating loss of more than $4 billion, while only cashing in $402 million in sales. That adds to the whopping $80 billion and more the division has lost in the past six years.
But experts are somewhat more hopeful about the AI bet because, earlier this month, the tech giant debuted the first fruits of that investment with the AI model Muse Spark, a proprietary model that the company plans to open-source in the future. It’s a step in the right direction, but Meta still has to do more before it can confidently say the catch-up effort is successful.
“This was the first release from Meta Superintelligence Labs, and it shows that our work is on track to build a leading lab,” Zuckerberg assured investors in the company’s earnings call. “Now that we have a strong model, we can develop more novel products as well.”
Those novel products will include two agents, one for personal and the other for business uses, according to Zuckerberg.
“We’re already testing an early version of business AIs and weekly conversations have grown 10x since the start of this year,” Zuckerberg said.
One way that AI is clearly showing up to benefit Meta is internally. Meta CFO Susan Li said that over half a billion users weekly on Facebook and Instagram each are now watching videos translated and dubbed by AI. The company is also incorporating the new AI model into parts of its core business, like ads, and particularly into its recommendation system. The goal is to have the AI hyper-personalize feeds for users.
“Since our recommendation systems are operating at such large scale, we’ll phase in this new research and technology over time,” Zuckerberg said. “But the trend over the last few years seems clear that we are seeing an increasing return on the amount that we can improve engagement for people and value for advertisers.”
AI is also taking over internally at Meta. The company is laying off 10% of its workforce and reportedly offering voluntary buyouts to 7% of its U.S. staff, in what seems to follow a purportedly AI-driven trend that has taken Silicon Valley by storm.
On the call, executives wouldn’t say if the layoffs had to do with automation of jobs, but Li did say that a “leaner operating model” would help “offset the substantial investments we’re making.”
![John Grisham’s New Legal Drama Is a Real Life Fight Against AI Audiobooks on YouTube
There’s an argument to be made that audiobooks are the finest form of content. You take a book—already off to a good start—and you get to have someone read it right into your ears. And when I say “someone” I mean the GOATs in the voice game. I could cite examples of celebrities you never knew narrated audiobooks, but here’s a sample of Werner Herzog narrating his memoir Every Man for Himself and God Against All that I think speaks for itself: [embed]https://www.youtube.com/watch?v=P4IQSvi3pXU[/embed] What could be better than this? Not only are audiobooks heaven, you can probably get all the audiobooks you want for free (and legally) by getting yourself a library card and using your local library’s preferred app (Libby, perhaps). I say all that, because given all the easy and free access to high quality audiobooks, why in the world would anyone listen to a John Grisham audiobook presented like this?
Don’t click that link. Instead of the actual audiobook, which is read wonderfully by Michael Beck, it will take you to a YouTube video consisting of an AI narrator reading Grisham’s recent hit novel the Widow, and the narration plays under 13 hours of AI slop video—simulated stock footage of fake vacations, basically. It looks like the video they display under the lyrics on Hell’s karaoke machine. I don’t have any science to back this up, but it will definitely give you brain cancer.
As the New York Times points out, 80,000 lost souls listened to the Widow this way. And Grisham is pissed about it. “The thieves and pirates who steal my work and try to profit from it, in any format, should be punished civilly and criminally […] And in this particular example, YouTube is complicit because it’s clear they know what is happening and refuse to stop it,” Grisham told the Times in an email. He should really write about this. YouTube, for its part, says the video is still up because there hasn’t been a takedown request, and that it doesn’t proactively police for copyright violations. “For more than two decades, we’ve built systems that help rights holders manage and control their copyrighted content — investing continuously to make sure those systems evolve as new threats emerge,” Jack Malon, a YouTube spokesperson, wrote to the Times.
If you’ve ever had a YouTube video flagged for a copyright violation, it may have been because of a feature called Content ID that music publishers absolutely love. It allows copyright holders to crawl YouTube and automatically detect copyrighted content. At times, Content ID has been a valuable moneymaking scheme for copyright holders, who were able to zero in on incidental—or even accidental—uses of copyrighted material, especially music, and by making a claim, monetize other people’s videos. It can’t do this anymore, but this is the sort of thing YouTube’s copyright system has been designed to support. As the Times points out, Content ID isn’t great at finding AI-narrated audiobooks. The audio waveform of the content is not the same as the audio the publisher owns, which makes it tricky to know what to even scan for. The author holds a copyright on the text, which can be slightly changed by the creator of the YouTube video while still leaving the book largely intact—good enough for casual listeners anyway. This leaves publishers and authors to navigate the takedown process manually, which seems, judging from the fact that the Widow is still up, to just not be happening.
That’s a pity. And I don’t mean because it’s robbing John Grisham of audiobook sales, which is bad, but not the gravest injustice in the universe. It’s bad because people are listening to such horrible garbage just because it’s available. And they really, truly, don’t have to. #John #Grishams #Legal #Drama #Real #Life #Fight #Audiobooks #YouTubeArtificial intelligence,Audiobooks,Books,intellectual proper John Grisham’s New Legal Drama Is a Real Life Fight Against AI Audiobooks on YouTube
There’s an argument to be made that audiobooks are the finest form of content. You take a book—already off to a good start—and you get to have someone read it right into your ears. And when I say “someone” I mean the GOATs in the voice game. I could cite examples of celebrities you never knew narrated audiobooks, but here’s a sample of Werner Herzog narrating his memoir Every Man for Himself and God Against All that I think speaks for itself: [embed]https://www.youtube.com/watch?v=P4IQSvi3pXU[/embed] What could be better than this? Not only are audiobooks heaven, you can probably get all the audiobooks you want for free (and legally) by getting yourself a library card and using your local library’s preferred app (Libby, perhaps). I say all that, because given all the easy and free access to high quality audiobooks, why in the world would anyone listen to a John Grisham audiobook presented like this?
Don’t click that link. Instead of the actual audiobook, which is read wonderfully by Michael Beck, it will take you to a YouTube video consisting of an AI narrator reading Grisham’s recent hit novel the Widow, and the narration plays under 13 hours of AI slop video—simulated stock footage of fake vacations, basically. It looks like the video they display under the lyrics on Hell’s karaoke machine. I don’t have any science to back this up, but it will definitely give you brain cancer.
As the New York Times points out, 80,000 lost souls listened to the Widow this way. And Grisham is pissed about it. “The thieves and pirates who steal my work and try to profit from it, in any format, should be punished civilly and criminally […] And in this particular example, YouTube is complicit because it’s clear they know what is happening and refuse to stop it,” Grisham told the Times in an email. He should really write about this. YouTube, for its part, says the video is still up because there hasn’t been a takedown request, and that it doesn’t proactively police for copyright violations. “For more than two decades, we’ve built systems that help rights holders manage and control their copyrighted content — investing continuously to make sure those systems evolve as new threats emerge,” Jack Malon, a YouTube spokesperson, wrote to the Times.
If you’ve ever had a YouTube video flagged for a copyright violation, it may have been because of a feature called Content ID that music publishers absolutely love. It allows copyright holders to crawl YouTube and automatically detect copyrighted content. At times, Content ID has been a valuable moneymaking scheme for copyright holders, who were able to zero in on incidental—or even accidental—uses of copyrighted material, especially music, and by making a claim, monetize other people’s videos. It can’t do this anymore, but this is the sort of thing YouTube’s copyright system has been designed to support. As the Times points out, Content ID isn’t great at finding AI-narrated audiobooks. The audio waveform of the content is not the same as the audio the publisher owns, which makes it tricky to know what to even scan for. The author holds a copyright on the text, which can be slightly changed by the creator of the YouTube video while still leaving the book largely intact—good enough for casual listeners anyway. This leaves publishers and authors to navigate the takedown process manually, which seems, judging from the fact that the Widow is still up, to just not be happening.
That’s a pity. And I don’t mean because it’s robbing John Grisham of audiobook sales, which is bad, but not the gravest injustice in the universe. It’s bad because people are listening to such horrible garbage just because it’s available. And they really, truly, don’t have to. #John #Grishams #Legal #Drama #Real #Life #Fight #Audiobooks #YouTubeArtificial intelligence,Audiobooks,Books,intellectual proper](https://gizmodo.com/app/uploads/2026/05/john-grisham-1280x853.jpg)

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