Meta's Mark Zuckerberg gets green light from Wall Street to keep pouring money into AI

Core Viewpoint - Meta Platforms Inc. is significantly increasing its investment in artificial intelligence (AI) for 2026, with Wall Street showing support for this strategy [1][3]. Financial Performance - In its fourth-quarter earnings report, Meta exceeded expectations on both revenue and earnings, reporting a 24% year-over-year revenue growth driven by online advertising [2][3]. - The company plans to allocate between $115 billion and $135 billion for AI-related capital expenditures in 2026, nearly double the amount spent in the previous year [2]. AI Investment Strategy - CEO Mark Zuckerberg emphasized the importance of investing in infrastructure to develop advanced AI models and deliver personal super intelligence globally [4]. - Meta's finance chief, Susan Li, noted that the company is "capacity constrained," indicating a need for more computing power to enhance its advertising business and support AI development [5]. Future AI Developments - Zuckerberg stated that 2026 will be pivotal for AI, with expectations for new product rollouts throughout the year [6][7]. - The company has made a significant investment of $14.3 billion in Scale AI, bringing in key talent to lead its AI initiatives [7]. AI Model Development - Zuckerberg mentioned that the first models developed are expected to demonstrate a rapid improvement trajectory, with ongoing releases planned throughout the year [8]. - He highlighted the necessity for Meta to develop its own AI foundation model to maintain control over its technological future and not rely on external developments [8]. Revenue Dependency - Despite the focus on AI, online advertising remains the primary revenue source for Meta, providing substantial cash flow that allows the company to pursue its AI ambitions [8].