Meta shares drop more than 6.5% after Zuckerberg announces $145bn capital expenditure forecast for AI infrastructure

Meta raised its capital expenditure forecast from up to $135bn to up to $145bn this year, driven by plans for a vast network of data centres. Zuckerberg has pledged to spend as much as $600bn on AI in the coming years.

The share drop occurred despite Meta posting a 33% increase in revenues to $56.3bn and a 61% increase in profit to $26.8bn. Investors have been closely watching the spending plans of Silicon Valley giants amid concerns their AI infrastructure blitz could prove unsustainable.

Meta is preparing to lay off up to 8,000 staff next month, even as its AI spending continues.