Meta Boosts AI Spending to $135-$145B

Key Takeaways

• Meta raised its 2026 capital spending plan to $135 billion–$145 billion to fund aggressive AI investment.
• Meta reported Q3 revenue of $64.6 billion but was hit by a $9.9 billion legal charge and a separate $25 billion penalty in New Mexico.
• Meta introduced a new nonvoting Class C share, structured like a two-for-one split, to fund AI expansion while preserving Mark Zuckerberg's voting control.
• Over 10 million people in the US and Canada have set up Meta's Muse personal agent accounts within about a month and a half.
• Meta's free cash flow turned negative at negative $2.12 billion for the quarter ending September 30.
• Spotify removed more than 50 million AI-generated spam tracks from its recommendation system over the past year.
• Workday partnered with Anthropic to connect Claude with its Sana experience for HR and finance workflows.
• AI lab Flapping Airplanes raised $1 billion at a $6 billion valuation, with Nvidia among the investors.
• OpenAI added Locked Chats to ChatGPT, allowing PIN or Face ID protection for private conversations.
• Naver invested in US AI startup Instinct, valued at $10 billion, as part of its plan to build relationships with emerging AI companies.

Meta raises AI spending plan and adds new stock class

Meta Platforms increased its 2026 capital spending outlook to $135 billion to $145 billion. The company announced a new class of nonvoting Class C shares. Existing shareholders will receive one new share for each share they own, similar to a two-for-one stock split. Trading of the new shares is expected to begin in January 2027.

Meta shares jump on strong earnings and new AI stock plan

Meta reported strong third-quarter earnings, with net income of $9.86 billion, or $3.83 per diluted share. Shares rose more than 4% in after-hours trading to $726. The company forecast fourth-quarter revenue of $73 billion to $76 billion. It also announced new nonvoting Class C shares to help fund its aggressive AI spending, which is expected to reach $135 billion to $145 billion in 2026.

Meta lifts AI spending to $145 billion as Tesla and IBM report earnings

Meta raised its 2026 capital spending outlook to $135 billion to $145 billion and introduced new Class C nonvoting shares. The new shares will help fund acquisitions and retain talent without reducing Mark Zuckerberg's voting control. Tesla beat profit expectations with adjusted earnings of 48 cents per share. IBM's sales rose about 5% to $17.1 billion in the quarter ended September 30.

Meta beats revenue targets but legal costs hit profits in AI push

Meta reported third-quarter revenue of $64.60 billion, beating estimates, but profits fell due to a $9.9 billion legal charge. The charge relates to an August agreement with 52 state attorneys general over teen mental health and social media. Meta also faces a $25 billion penalty ordered by a judge in New Mexico. The company spent $35 billion on capital expenditures in the quarter and is spending heavily on AI models like Muse.

Meta issues new shares to fund AI expansion and revenue growth

Meta introduced new nonvoting Class C common stock to fund its costly AI expansion. More than 10 million people in the US and Canada have set up Muse accounts within a month and a half. The company raised its annual capital spending forecast to $135 billion to $145 billion. Meta forecast fourth-quarter revenue between $73 billion and $76 billion and expects AI businesses to start contributing incremental revenue in 2027.

Meta raises AI spending to $135 billion amid cash flow pressure

Meta plans to keep investing heavily in artificial intelligence and raised its capital spending floor to $135 billion this year. Its free cash flow turned negative at negative $2.12 billion for the quarter ending September 30. To ease financial pressure, Meta will issue a new class of stock through a two-for-one stock split in January. Revenue reached $64.6 billion, up 26 percent, while costs rose 68 percent. CFO Susan Li said the company expects to continue investing aggressively in AI.

Meta beats revenue expectations but legal penalties hit profit

Meta reported third-quarter revenue that beat investor expectations but profits fell short due to an $18 billion legal settlement with nearly all US states. The company reported $9.86 billion in profits, dragged down by a $9.9 billion charge related to the settlement. A judge also ruled Meta must pay $25 billion to New Mexico over the Cambridge Analytica scandal. Meta spent $35 billion on capital expenditures in the September quarter and over $85 billion so far this year. The company also plans to issue a new non-voting class of stock to fund its AI roadmap.

Meta to fund AI investments with new non-voting stock class

Meta plans to create a new class of non-voting capital stock distributed to all existing shareholders through a stock dividend. CFO Susan Li said the move will expand funding tools and help maintain the founder-led structure. Revenue reached $64 billion, up 26 percent from a year earlier, while costs rose 68 percent. Reality Labs losses are expected to shrink to between $18 billion and $19 billion. Over 10 million people in the US and Canada now use the Muse personal agent, and CEO Mark Zuckerberg expects the product to eventually serve billions.

Spotify removes 50 million AI spam tracks from recommendations

Spotify says it removed more than 50 million slop and spam tracks from its recommendation system over the past year. It also removed over 75 million spammy tracks from the platform for rule violations. The company said listeners were skipping or flagging songs identified as AI-generated. AI-generated music is 10 times more likely to fall below Spotify's 1,000-stream minimum for monetization. Spotify uses listener engagement, upload patterns and third-party tools to detect AI content, though it admits those tools have limits.

Musicians and fans push back against AI-generated music

Spotify removed about 50 million songs considered AI slop from its recommendations over the past year. Streaming services are taking different stances, with Apple Music tagging AI content and YouTube Music rolling out labeling tools. Bandcamp banned all AI-created music at the start of this year. Even AI boosters like Grimes and A$AP Rocky said they accept AI music but will not make it themselves. Fans are voting against AI music, with albums like the Beatles' Rubber Soul still charting strongly.

UK regulator pushes for mandatory reporting of major AI failures

UK Financial Conduct Authority Chief Data Officer Jessica Rusu called for companies to report significant AI failures and near-misses. She said near-miss reporting for agentic AI is now a national security priority. The FCA plans to work with industry and regulators on a trusted framework for agentic finance. Experts debated what counts as a significant failure and warned that weak penalties could make the rules ineffective.

AI stocks compared to dot-com bubble in investor discussion

On the Acquirers Podcast, hosts discussed whether AI stock prices are too high compared to the dot-com bubble. One host said AI tools like ChatGPT and Claude are powerful and useful for daily tasks. He noted that most people still use free versions, suggesting room for growth. He compared the current AI excitement to the late 1990s dot-com boom and said the market may be moving ahead of itself in the short term.

South Korea stock market swings wildly on AI boom

South Korea's stock market has experienced dramatic swings this year due to the global AI boom. The KOSPI index has been affected by rapid shifts in investor sentiment driven by AI-related news. Reports describe the market moving from panic to euphoria within a single day. The situation reflects how global AI trends are strongly influencing regional markets.

Naver invests in US AI startup Instinct valued at 10 billion

South Korean internet company Naver Corp. invested in Instinct, a US AI assistant startup valued at $10 billion. The move is part of Naver's plan to build relationships with emerging AI companies. Naver wants to secure a position in the next generation of digital platforms. The investment shows growing global interest in AI assistant technology.

Workday stock rises on AI announcements and new partnerships

Workday shares rose 3.5% after AI-focused announcements from its October 13 analyst event. The company partnered with Anthropic to connect Claude with its Sana experience for HR and finance workflows. Workday also introduced tools for building and governing AI agents and announced plans to acquire C1.ai, an identity platform for employees and AI agents. Analysts noted that Workday is strengthening its position in enterprise software as AI adoption grows.

Ohio AI training program shows early results but benefits unclear

Ohio launched the AI Ready Ohio pilot program in November 2025 through JobsOhio and the Enterprise Technology Association. Over 3,000 people have started the certification process and more than 2,000 have earned at least one certificate. Software developer Musa Hakim Jr. used the training to improve an app for teenagers, growing its waitlist to over 10,000 people. Researchers say it is still too early to know whether the training is leading to better jobs or higher pay for participants.

AI startup Flapping Airplanes raises $1 billion at $6 billion valuation

Flapping Airplanes, a one-year-old AI lab, raised $1 billion in a new funding round at a $6 billion valuation. The company was founded by Aidan Smith and brothers Asher and Ben Spector, who are working on a megakernel framework that can run training and inference tasks simultaneously on GPUs. The framework aims to make AI systems much more data efficient and less costly to train and operate. Investors in the round include Sequoia, GV, Kleiner Perkins, Valor, Atreides, A*, and Nvidia.

ChatGPT adds locked chats with PIN and Face ID protection

OpenAI introduced Locked Chats in ChatGPT on October 20, 2026, allowing users to protect private conversations with a four-digit PIN or biometric authentication like Face ID and Touch ID. Locked chats are stored in a separate section with their own memory system and can be revisited later. The feature does not offer end-to-end encryption and is meant for device-level access protection. Resetting the PIN will permanently delete all locked chats and their files. The rollout is gradual across Free, Go, Plus, Pro, Business, Enterprise, and Edu plans.

Sources

• Meta Boosts Bet on AI With Spending Outlook, New Stock Class
• Meta stock surges on strong earnings report; tech giant unveils new shares to bankroll AI spending
• Meta Lifts AI Spend to $145B, Tesla and IBM Beat
• Meta beats expectations but legal penalties hit profit amid AI race
• Meta to issue new class of shares as it tightens AI spending forecast
• Meta Earnings Show Increased A.I. Spending, Even as Cash Pressures Grow
• Meta beats expectations but legal penalties hit profit amid AI race
• Meta wants to pay for its broad AI buildout with a newly created class of stock
• Spotify says it took 50 million 'slop and spam' tracks out of listener recommendations
• As fans reject AI-generated music, even boosters are drawing the line
• UK FCA exec wants to require disclosure of ‘significant AI failures and near-misses’
• AI Stocks vs. the Dot-Com Bubble: Are Investors Paying Too Much?
• South Korea's AI trade just went from panic to euphoria in 24 hours
• Naver Ventures to plant flag in Silicon Valley with TwelveLabs bet
• Workday rises on AI product push, Anthropic partnership, and C1.ai deal
• Examining effectiveness of Ohio's AI training
• Year-old AI lab Flapping Airplanes raises $1B at a $6B valuation
• ChatGPT adds locked chats feature with PIN and Face ID: How to protect private conversations