Meta narrows capex forecast as it leans into the AI agent wars

Meta, under the leadership of Mark Zuckerberg, has trimmed its capital expenditures (capex) projection as it intensifies its efforts in the AI agent wars. According to Bloomberg, the company spent $34.91 billion on infrastructure in the third quarter of 2026, an increase from the previous quarter's $31.08 billion. For the entire year of 2026, Meta anticipates capital expenditures ranging from $135-145 billion, a narrowing from its earlier prediction of $130-145 billion.

This forecast includes the total capex expected for the year, which aligns with analysts' expectations of $139.79 billion. Meta's surge in spending is primarily directed towards data centers and computing power for AI development. CEO Mark Zuckerberg discussed these investments on the "Cheeky Pint" podcast, where he stated his willingness to invest up to $200 billion in AI, if the technology proved effective.

Despite Meta's substantial capex forecasts in recent quarters, leading to a 10% stock decline, the company is now focusing on its AI assistant, Muse. Muse has garnered over 2 million daily users and 3 million downloads, and is currently available for free. The AI assistant has proven popular, helping users plan trips and prepare for exams, with Muse users praising its functionality.

Meta's chief AI officer, Alexandr Wang, maintains a positive outlook, sharing memes of Muse's mascot to generate excitement. At Meta's Connect event in September, Zuckerberg announced that Muse has a unique business model, with the potential for the company to profit from transaction fees over time. This development has helped to bolster investor confidence in Meta's capex guidance, resulting in a 4.12% stock increase after-hours.