The capex pressure to compete in compute is just beginning.

Meta spent $72bn on capex in 2025. And now projects it will spend $135bn in 2026. I expect to them actually spend closer to $150 billion.

Meta is vying to become one of the major research labs and AI Enterprise and consumer product companies in the world.

It will likely end up spending twice as much just one year later on AI infrastructure, talent and related Capital expenses.

Companies like xAI, Bytedance, Alibaba and others need to do the same as they ramp up their own models and products and application strategies. Still relatively early days in a tremendous Capital injection.