Meta Raises AI Capex to $145B, Strikes Billion-Dollar Broadcom Deal
AVGO•Meta Platforms raised its 2026 capital expenditure outlook by 7.4% to a range of $125 billion to $145 billion as it ramps AI infrastructure spending. The company has sealed billion-dollar chip and hardware deals with Nvidia, AMD and Broadcom while building multiple massive data centers.
1. Meta Raises AI Capex Outlook
Meta Platforms increased its capital expenditure projection to $125-$145 billion for 2026, citing higher component pricing and data-center costs as it escalates AI development. CFO Susan Li highlighted confidence in the AI strategy despite a memory chip shortage and rising infrastructure expenses.
2. Broadcom's Role in AI Infrastructure
Among multiple supply agreements, Meta secured a billion-dollar deal with Broadcom for high-performance chips and hardware to power its expanding data centers. This positions Broadcom as a key supplier in Meta’s multi-billion-dollar AI investment drive.
3. Financial Implications for Broadcom
The infusion of large-scale orders from Meta is expected to bolster Broadcom’s revenue and diversify its AI customer base. Sustained infrastructure spending by top cloud and social media companies could drive margin expansion and long-term growth.
