Meta CEO Mark Zuckerberg said 2026 will be the year "AI starts to dramatically change the way that we work," as his company flattens teams and provides AI tools to boost individual productivity.
Why it matters: Meta is under pressure to justify its aggressive AI spending as it predicts its capital expenditures could nearly double this year to a whopping $135 billion.
- Zuckerberg is betting the returns will show not only in its consumer products and advertising business but also its workforce.
Zoom in: Zuckerberg said during the earnings call Wednesday that Meta is investing in "AI-native tooling" to help its employees do more on their own.
- "We're starting to see projects that used to require big teams now be accomplished by a single, very talented person," Zuckerberg said.
- Meta CFO Susan Li said since the start of 2025, output per engineer has risen 30%, driven largely by adopting AI coding agents, and "power users" have increased output 80% year over year.
The big picture: Zuckerberg is betting that an AI-powered workforce will help Meta keep and attract talent.
- "I want to make sure that as many of these very talented people as possible choose Meta as the place that they can make the greatest impact, to deliver personalized products to billions of people around the world," Zuckerberg said.
- "And if we do this, then I think that we're going to get a lot more done, and I think it's going to be a lot more fun," he continued.
Between the lines: Meta needs AI to deliver changes both internally with its own operations and externally to its users and advertisers to justify the scale of its spending.
- The company said it expects 2026 capital expenditures of $115 billion to $135 billion, up significantly from $72.2 billion in 2025, as it invests in data centers, chips and other AI infrastructure.
- But the company is also forecasting higher operating income for 2026. It reported $83.3 billion in 2025, up 20% from the prior year.
Go deeper: Meta stock pops on positive outlook amid AI spending surge
