Meta narrows capex forecast as it leans into the AI agent wars (www.businessinsider.com)

Meta has increased its capital expenditures to a whopping $34.91 billion in Q3 2026, up from $31.08 billion in the previous quarter, and is now projecting a total yearly spend of $135-145 billion. This strategic investment is part of Meta's aggressive push into the AI landscape, highlighting its commitment to developing robust AI capabilities through the construction of significant data centers and expanding computing power. CEO Mark Zuckerberg recently expressed his willingness to invest up to $200 billion in AI, signifying the company's deep belief in the potential of its AI technologies despite investor hesitations reflected in past stock performance. Amid this ambitious spending, Meta has launched its AI assistant, Muse, which has already gained over 2 million daily users and 3 million downloads, quickly becoming a popular tool for various tasks, from trip planning to academic assistance. Zuckerberg emphasized Muse's innovative business model during the Connect keynote, noting that while it will be free for users initially, plans include monetizing through transaction fees in the future. This vibrant push into AI, combined with positive early traction for Muse, could help appease investors concerned about Meta's escalating expenditures, with the stock already showing signs of recovery by increasing 4.12% after hours.