In a landmark strategic shift, Meta Platforms Inc. has detailed a sweeping overhaul of its AI infrastructure, signaling a future where artificial intelligence dictates every interaction across Facebook, Instagram, and WhatsApp. Following its Q4 2025 earnings report, CEO Mark Zuckerberg announced that Meta will nearly double its capital expenditure in 2026, targeting a staggering $115 billion to $135 billion to build what he calls “personal superintelligence.”

AI-Driven Performance and Revenue Milestones

Meta’s aggressive pivot is already yielding massive financial returns. The company reported a 24% year-over-year revenue increase, reaching $59.8 billion for the final quarter of 2025. Key performance metrics driven by new AI recommendation engines include:

• Reels Growth: Facebook is now surfacing 25% more same-day Reels compared to previous quarters.
• Original Content: On Instagram, the prevalence of original content in the US grew by 10 percentage points, with 75% of recommendations now coming from original posts.
• Threads Engagement: AI-driven optimizations led to a 20% lift in time spent on the Threads platform.
• Ad Success: Meta’s video generation tools for advertisers hit a $10 billion revenue run-rate, growing three times faster than overall ad revenue.

The Leap to “Superintelligence” and Project Avocado

Beyond engagement, Meta is fundamentally restructuring its technical stack. The newly formed “Meta Compute” organization, led by infrastructure veteran Santosh Janardhan and former Safe Superintelligence co-founder Daniel Gross, will manage a decade-long plan to build data centers consuming tens of gigawatts of power.

The company is currently testing a new frontier model internally, code-named “Avocado.” Intended to leapfrog the mixed reception of Llama 4, Avocado aims for human-level reasoning and is expected to launch in the first half of 2026. This model will power a new generation of “Business AIs” on WhatsApp, capable of handling complex customer tasks—such as checking product availability and processing orders—directly within the chat.

Infrastructure and Strategic Partnerships

To support this “AI-first” identity, Meta has secured significant industrial partnerships:

• Nuclear Energy: Agreements for up to 6.6 gigawatts of nuclear power capacity through 2035 with partners like Oklo and TerraPower.
• Optical Hardware: A $6 billion deal with Corning to supply fiber-optic cables for its next-gen AI data centers.
• Scale AI Acquisition: A $14.3 billion investment to acquire a 49% stake in Scale AI, bringing CEO Alexandr Wang into the fold as a key leader for Meta’s Superintelligence Labs.

While Meta has reduced headcount in its Reality Labs (metaverse) division by over 1,000 roles this month, the shift toward “AI-generated feeds” represents Zuckerberg’s bet on securing dominance in the global AI arms race.

Key Highlights:

• Record Spending: Meta plans to spend up to $135 billion in 2026 on AI infrastructure, nearly double its 2025 outlay.
• Financial Surge: Driven by AI-optimized ads, Q4 revenue hit $59.8 billion, with video ad tools reaching a $10 billion run-rate.
• Next-Gen Models: The company is developing “Avocado,” a new reasoning AI model designed to provide “personal superintelligence” to billions of users.
• Energy and Hardware: Meta has signed massive deals for nuclear power and fiber-optics to fuel its growing network of AI data centers.