Published October 27, 2026.
The cost of building artificial intelligence is climbing, and investors are paying close attention. Meta raised its 2026 capital expenditure forecast to a range of $135 billion to $145 billion, and its shares fell about 7% afterward, according to the daily summary on AI Weekly. The same roundup said SoftBank is reportedly seeking around $100 billion for a new AI-focused fund. Together, the reports show how AI infrastructure spending is reshaping the technology industry.
What is capital expenditure?
Capital expenditure, or capex, is money a company spends on long-term assets. For AI, that mostly means data centers, networking equipment, power infrastructure, and chips. Companies argue the investment is necessary to train and run advanced models. Skeptics worry that spending may outpace the revenue AI products generate.
Why the market reacted
When a company raises spending guidance, investors weigh two questions: will the investment produce profitable products, and how soon? A 7% drop suggests some investors want clearer evidence of returns. Share moves can reverse quickly, so a single day’s reaction is not a verdict on the strategy.
Public opinion is cautious
A national survey highlighted in a Tech Startups weekly roundup found that nearly two-thirds of Americans believe AI is developing too quickly. That sentiment is relevant to policymakers weighing regulation, data center permitting, and energy demand.
Key takeaways
- Big technology companies continue to raise AI budgets even as markets scrutinize returns.
- Capital is flowing from both corporate balance sheets and investment funds.
- Public concern about the pace of AI adds political pressure on the industry.
This is general information, not investment advice. Read company filings and earnings reports for official figures. For related news, see our report on the October AI model race.
