Meta has dramatically ramped up its spending on artificial intelligence, investing heavily in infrastructure and talent to stay competitive in the fast-evolving AI landscape. The company has announced plans for capital expenditures of up to $135 billion, a substantial increase from previous years and a clear signal of its commitment to building cutting-edge AI systems. This surge in spending is not happening in isolation. Despite the massive outlays, Meta’s core advertising business continues to perform strongly, providing the financial foundation that enables such aggressive investment. Revenue from ads remains robust, driven by strong user engagement and advanced targeting capabilities, allowing Meta to fund its AI ambitions without compromising its financial stability. The company has been deploying AI across its platforms—enhancing content recommendations, improving ad delivery, and powering new features like AI-generated avatars and advanced image and video tools. These innovations are not only improving user experience but also increasing the efficiency and effectiveness of its ad ecosystem, creating a virtuous cycle of growth. Meta’s AI strategy also includes significant investments in custom hardware, particularly its AI chips, which are designed to power large-scale models more efficiently than off-the-shelf alternatives. By developing its own silicon, Meta aims to reduce reliance on third-party suppliers and maintain control over performance and cost. In addition, the company has been actively hiring top AI researchers and engineers, including key talent from OpenAI, Google DeepMind, and other leading labs. This influx of expertise is accelerating development in areas like multimodal models, natural language understanding, and generative AI. While some analysts had initially questioned whether Meta could sustain such high spending without eroding profits, the company’s ability to grow ad revenue in tandem with its AI investments suggests otherwise. The integration of AI into core products is not just a long-term play—it’s already delivering measurable results. With its financial muscle, strategic focus, and deep integration of AI into its platforms, Meta is proving that massive spending on AI can pay off—both in innovation and in the bottom line.