Meta, the parent company of Facebook, Instagram and WhatsApp, has increased its spending on artificial intelligence (AI) as it continues to invest heavily in new technology. The company believes AI will play a key role in its future growth.

According to a Reuters report today, Meta has revised its 2026 capital expenditure (Capex) forecast from USD 125 billion-USD 145 billion to USD 130 billion-USD 145 billion.

The additional spending will be used to build A Idata centres, buy advanced computer chips and expand its AI infrastructure.

Despite the higher AI spending, Meta’s business continues to perform well. The company reported a 28 percent rise in second-quarter revenue, driven by strong advertising sales and growth in users across its platforms.

However, Meta’s free cash flow dropped sharply during the quarter because of its heavy AI investments. The company said it will continue investing in AI as it expects these investments to support long-term growth, even though they may put pressure on its finances in the short term.

Meta believes its continued investment in AI infrastructure will help improve its AI products and strengthen its platforms in the years ahead.