Meta’s Revenue and Muse Growth Clash With Record-Size AI Spending

The company’s strong sales and early Muse adoption have led it to boost AI-related capital plans, a move that raises new questions about how it will fund that spending.

Overview

Meta reported robust third-quarter revenue growth to $64.6 billion and said more than 10 million people in the U.S. and Canada set up Muse agents soon after launch.
The company recorded $34.91 billion in quarterly capital spending, pushed full-year capex guidance to $135–$145 billion, and posted negative free cash flow for the quarter.
Meta told investors it will create a new class of nonvoting shares to widen its financing options and give management more flexibility to invest in AI.
Markets reacted with concern: the stock gave back its after-hours gain and fell about 7%, and the cost to insure Meta’s bonds rose to record levels.
Meta cited large capital raises by other AI and tech firms as a reason the funding backdrop is tighter, which means investors will watch other big tech earnings for signs of how companies will finance heavy AI buildouts.