Meta surges, Microsoft stumbles as Big Tech doubles down on AI spend
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Meta Quarterly Revenue Jumps 24%, Plans to Double AI Spending in 2026
Is Meta's AI investment a strategic bet on a transformative technology or a mistake in light of an inflating AI bubble?
Above: Mark Zuckerberg at the Meta Connect event in Menlo Park, California, on Sept. 17, 2025. Image credit: David Paul Morris/Bloomberg/Getty Images
The Spin
Techno-skeptic narrative
Meta's announcement is further evidence of an ever-inflating AI bubble, which, with every delayed reality check, will become increasingly catastrophic when it inevitably pops. After all, even marginally improving the technology requires resources and funding levels that are totally unsustainable. When reality hits home, Meta will come to regret its reckless AI spending commitments.
Techno-optimist narrative
As Meta's record revenue and investments show, there is no AI bubble. Rather, this technology and the promise it holds could revolutionize commerce, user experiences and how billions interact, with the technology already unlocking $4.5 trillion in labor value. Meta infrastructure spending, therefore, is not folly, but a strategic bet on a transformative capability that is only growing stronger.
Metaculus Prediction
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© 2026 Improve the News Foundation. All rights reserved.Version 6.18.0
© 2026 Improve the News Foundation.
All rights reserved.
Version 6.18.0