Meta Platforms Signs NVIDIA AI Data-Center Deal, Plans $115–135B Capex
Meta Platforms signed a multi-year agreement with NVIDIA to expand AI-optimized data centers and deploy NVIDIA Confidential Computing and Spectrum-X across its infrastructure, enhancing AI personalization for 3.58 billion users. The company expects 2026 capital expenditures of $115–135 billion and operating expenses of $162–169 billion, which may pressure free cash flow.
1. NVIDIA Partnership Fuels AI Infrastructure Expansion
Meta Platforms has inked a multi-year deal with NVIDIA to build and optimize data centers for AI training and inference. The agreement includes adoption of NVIDIA Confidential Computing for WhatsApp private messaging and the Spectrum-X Ethernet networking platform, underpinning the company’s push to support 3.58 billion users with industrial-scale AI services.
2. AI Integration Drives Engagement and Advertising Growth
By embedding AI across Facebook, Instagram, WhatsApp, Messenger and Threads, Meta tripled daily active media generated by Meta AI in Q4 2025. Enhanced recommendation systems and a business assistant for advertisers are expected to boost time spent and ad engagements, while expanding ad formats on Threads and WhatsApp Status.
3. Record Capital Spending to Pressure Cash Flow
Meta now forecasts 2026 capital spending of $115–135 billion and operating expenses of $162–169 billion, representing a major increase in infrastructure investment. While these outlays support long-term AI leadership, they are likely to squeeze free cash flow and weigh on near-term profitability.