Meta is heading into 2026 in what analysts describe as full AI-acceleration mode, marking a decisive shift from being primarily a social media company to becoming a large-scale artificial intelligence and advertising infrastructure player, according to a report by CAN News.
The company has significantly raised its capital expenditure guidance for 2025–2026, signalling that tens of billions of dollars will be channelled into data centres, custom AI chips and large-scale computing infrastructure. Analysts cited by the website estimate that by 2028, Meta’s cumulative investment in AI infrastructure, capacity expansion and sustainability initiatives could reach nearly $600 billion, including projects linked to its goal of becoming water-positive by 2030.
At the same time, Meta appears to be scaling back its ambitions in the metaverse. After its Reality Labs division posted operating losses exceeding $70 billion since 2021, the company is reportedly preparing to cut spending on metaverse and virtual reality initiatives by as much as 30 percent as it enters 2026. Those resources are expected to be redirected toward generative AI, AI-driven advertising tools and AI-powered consumer devices such as smart glasses, along with a new internal “superintelligence” unit focused on next-generation AI systems.
A central pillar of Meta’s strategy is the move toward near-fully automated advertising. According to CAN News, the company aims to reach a point by around 2026 where brands can upload a single product image and a budget, allowing AI systems to manage creative production, copywriting, targeting and optimisation across Facebook and Instagram. Early adoption of AI-based ad tools has been strong, with some data indicating usage growth of around 30 percent year-on-year and conversion rate improvements reaching the mid-40 percent range in certain campaigns.
Financially, the AI push has supported robust performance through 2025. Meta reported year-on-year revenue growth in the low- to mid-20 percent range, with earnings beating market expectations, even as elevated AI spending continued to weigh on margins. Equity analysts heading into 2026 increasingly view Meta as one of the potential winners of the AI cycle, though debate continues over whether its current valuation adequately reflects both the growth upside and the risks associated with sustained high capital expenditure and mounting regulatory scrutiny.
CAN News report notes that Meta’s evolving strategy reflects a clear acknowledgment that the near-term commercial opportunity lies in AI systems that monetise attention, rather than in a consumer metaverse that has yet to achieve mass adoption. If Meta succeeds in delivering near-fully automated advertising and embedding AI agents across its platforms, 2026 could mark its transformation from a social media company into a core AI infrastructure layer for global marketing. Failure, however, would leave investors confronting one of the most expensive strategic bets in the history of the technology sector.
