Meta Platforms Inc. told investors Wednesday that a pricier wager on artificial intelligence is beginning to show returns, as the company raised its 2026 capital-spending plans and unveiled a new class of non‑voting stock that could be used to fund acquisitions or other strategic needs.
Chief Executive Mark Zuckerberg said the heavier investment in AI is driving performance improvements across the business, even as Meta prepares to deploy more cash to scale its models and infrastructure. The stock move and upgraded spending guidance underline management’s confidence in the long‑term payoff from AI, but also reinforce investor concerns about the sector’s hefty near‑term capital requirements.
The corporate landscape on Wednesday was otherwise dominated by a mix of tech-driven financing and cost cuts. Barclays Plc said it will cut about 5,000 jobs—roughly 5% of its workforce—as part of a “technology‑enabled” restructuring designed to reduce expenses while accelerating AI adoption across the bank.
In China, AI champion DeepSeek raised roughly 100 billion yuan ($15 billion) in one of the country’s largest private fundraising rounds, after repeatedly increasing its target from an initial 50 billion yuan to 80 billion yuan and ultimately to the final sum. The Hangzhou‑based firm’s war chest signals its ambition to challenge global peers including Anthropic and OpenAI. Related listings are also gaining momentum: Noetix Robotics, backed by battery maker CATL and formally known as Songyan Power Beijing Technology Co., has reportedly filed for a Hong Kong IPO that could raise several hundred million dollars, with timing and size still under discussion. A wave of Chinese robotics and AI‑supply‑chain companies is preparing Hong Kong listings as investor appetite for infrastructure plays grows.
Consumer and industrial results also offered bright spots. Nestlé SA beat the street with 3Q26 organic sales growth of 4%, driven by emerging‑market demand for snacks and pet food, and reaffirmed its full‑year sales‑growth target. Nokia topped expectations in 3Q26 as demand for data‑center networking equipment—fueled by AI infrastructure spending—lifted adjusted operating income to €605 million, well above analyst forecasts.
Autos showed momentum in Europe, where new‑vehicle registrations rose 10% in September to 1.36 million, marking an eighth consecutive monthly gain. Electric and hybrid vehicles accounted for 43% of sales, up from 32% a year earlier, with Chinese automakers capturing much of the growth.
Policy and geopolitics added to market nervousness. The U.S. withdrew diplomatic staff from Riyadh as tensions between Saudi Arabia and Houthi forces escalated, while Brent crude climbed about 2% to $112 a barrel. Long‑term borrowing costs continued to bite: rising yields and concerns about the sustainability of the AI trade were cited alongside geopolitical risk as key drags on sentiment.
Regulatory and capital‑markets shifts rounded out the day’s headlines. The European Union struck a provisional deal to overhaul securitisation rules, potentially freeing billions of euros to finance defense and climate resilience projects.
Earnings flow includes heavyweights such as Blackstone, Procter & Gamble, Spotify, Lockheed Martin and Dow, providing more near‑term focus for investors.
Markets reacted with caution. European and Asian equities slipped between 1.5% and 2.5%, while U.S. futures pointed to a roughly 1.5% decline—reflecting investor worries over rising yields, the future path for AI spending and firmer oil prices.
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