Capital expenditures, including principal payments on finance leases, reached $34.91 billion in the quarter. Operating cash flow was $32.79 billion and free cash flow was negative $2.12 billion.
The company narrowed its 2026 capital-expenditure outlook to $135 billion to $145 billion, from $130 billion to $145 billion previously. Meta said it expects to continue investing aggressively in capacity for model training, its core business, and new products. It said current and planned capacity can be allocated across those areas.
Mark Zuckerberg said Meta launched Muse and Muse Wonder and described Muse as the company’s first frontier model. Meta also expects Reality Labs losses of $18 billion to $19 billion for 2026 and around $15 billion next year as investment is reallocated primarily toward AI.
The release does not provide a breakdown of capital spending by data center, chip, model, or product. It also does not establish how much of the stated spending is directly attributable to the Muse models or any individual AI initiative.