Meta AI Spending Set for $196 Billion Spike

Meta’s AI budget is slated to surge to $196.3 billion in 2027, nearly triple its 2026 capex low‑end. The jump follows a September debut of Muse, the personal‑assistant that rocketed to the top of Apple’s iOS store. That AI buzz helped Meta close September with its strongest Wall Street month since 2022. Analysts expect Q3 earnings per share of $5.75 on $63.2 billion revenue, while daily active people should hold steady at 3.65 billion. Yet free cash flow plunged to $784 million, down from $8.55 billion a year earlier. The company’s AI chief Alexandr Wang continues rolling out foundation models like Muse Wonder, released last Monday. Investors will be watching if that spending converts into higher ad revenue, the real test of the AI push.