CEO Mark Zuckerberg offered no firm schedule for releasing improved AI models to follow the recently launched Muse Spark. Asked about the pace of Meta's AI agent development, Zuckerberg told investors: "There's a lot of agents out there that people are building for different things, but there aren't that many that I would want to give to my mother."
Follow Tom's Hardware on Google News , or add us as a preferred source , to get our latest news, analysis, & reviews in your feeds.
Luke James is a freelance writer and journalist.\u00a0 Although his background is in legal, he has a personal interest in all things tech, especially hardware and microelectronics, and anything regulatory.\u00a0 ","collapsible":{"enabled":true,"maxHeight":250,"readMoreText":"Read more","readLessText":"Read less"}}), "https://slice.vanilla.futurecdn.net/13-4-22/js/authorBio.js"); } else { console.error('%c FTE ','background: #9306F9; color: #ffffff','no lazy slice hydration function available'); } Luke James Social Links Navigation Contributor Luke James is a freelance writer and journalist. Although his background is in legal, he has a personal interest in all things tech, especially hardware and microelectronics, and anything regulatory.
henryv1 Yeah, the numbers are insane—~$725B in capex for 2026 is a 77% jump YoY , mostly driven by AI infra (data centers, GPUs, memory, etc.) . And to be fair, there is real growth backing some of it—cloud revenue (especially Google/Amazon) is exploding, which helps justify at least part of the spend. But the skepticism isn’t coming out of nowhere: Even now, a lot of this spending is front-loaded with unclear ROI timelines Depreciation costs on AI hardware are ramping hard and could eat into profits soon Some companies (Meta especially) are getting punished despite strong revenue because investors don’t see a clear monetization path yet There are legit concerns this turns into a capacity oversupply + price war if AI services commoditize At the same time, bulls aren’t wrong either: Hyperscalers are basically in an arms race— not spending is probably riskier than overspending Early signs (cloud + enterprise AI demand) suggest this isn’t just hype If AI becomes foundational like cloud/mobile, today’s capex might look cheap in hindsight So the real answer is probably somewhere in the middle: This isn’t “obviously dumb money”… but it’s also not guaranteed payoff. It’s a high-risk, high-conviction infrastructure bet , and the market is still figuring out whether it’s the next cloud boom—or another overbuild cycle like telecom in the early 2000s. Curious to see who actually converts this into profit first—that’s where the narrative will flip fast. Reply
Key considerations
- Investor positioning can change fast
- Volatility remains possible near catalysts
- Macro rates and liquidity can dominate flows
Reference reading
- https://www.tomshardware.com/tech-industry/big-tech/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/big-tech/big-techs-ai-spending-plans-reach-725-billion#main
- https://www.tomshardware.com
- US stops exports of tools to China’s number two chip maker — Hua Hong and Huali Microelectronics reportedly on the cusp of starting a 7-nm fab in Shanghai
- Into the Omniverse: Manufacturing’s Simulation-First Era Has Arrived
- US stops exports of tools to China’s number two chip maker — Hua Hong and Huali Microelectronics reportedly on the cusp of starting a 7-nm fab in Shanghai
- PS5 Linux loader goes public, turning ‘Phat’ consoles into full Linux PCs — build script includes bootable Ubuntu 24.04 image, can output 4K games at 60 FPS
- Talent over tokens: AI models are becoming more expensive to run, and productivity gains are limited — efficient workers might be the solution to strained budge
Informational only. No financial advice. Do your own research.