META · 10-K · 2025A · Full report
R&D Investment in AI
Meta Platforms, Inc. · 2026-01-29 · Importance 84 · Surprise 74
Research and development expense increased $13.50 billion, or 31%, to $57.37 billion in 2025, with higher employee compensation and infrastructure costs tied to R&D. Management specifically calls out significant investments in artificial intelligence, including generative AI and superintelligence, to recommend content, enhance advertising tools, and develop new products. Headcount in engineering and technical functions grew ~8% year‑over‑year, and share‑based compensation also increased R&D costs. These investments are expected to require significantly increased infrastructure spend going forward.
Key facts
- We anticipate making capital expenditures of approximately $115 billion to $135 billion in 2026 to support our AI efforts and core business.
- Research and development expense for 2025 was $57,372 million, an increase of $13,499 million, or 31%, compared to 2024.
- Research and development increased in 2025 mostly due to higher employee compensation and infrastructure costs related to research and development, including our AI initiatives.
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| cash | negative | committed | -29.0% | We anticipate making capital expenditures of approximately $115 billion to $135 billion in 2026 to support our AI efforts and core business. |
| assets | positive | committed | +29.0% | We anticipate making capital expenditures of approximately $115 billion to $135 billion in 2026 to support our AI efforts and core business. |
| operating_income | negative | realized | -6.7% | Research and development expense for 2025 was $57,372 million, an increase of $13,499 million, or 31%, compared to 2024. |
| operating_income | negative | realized | — | Research and development increased in 2025 mostly due to higher employee compensation and infrastructure costs related to research and… |