Massive AI infrastructure push and potential layoffs highlight Big Tech’s shifting priorities
Shares of Meta Platforms (META) rose as much as 3% on Monday after the company announced a major cloud-computing agreement with Nebius (NBIS) valued at up to $27 billion, signaling Meta’s continued push to dominate the rapidly expanding artificial intelligence infrastructure market.
Under the agreement, Nebius will provide Meta with $12 billion in computing capacity starting in 2027, giving the social media giant access to advanced AI hardware built on Nvidia’s upcoming Vera Rubin platform. In addition, Meta has committed to purchasing up to $15 billion in additional compute capacity that Nebius had originally reserved for third-party customers over the next five years.
The deal underscores the growing demand for high-performance computing as tech companies race to build large-scale AI systems. Following the announcement, Nebius shares surged more than 12%, extending a roughly 30% gain over the past month. Investor optimism around the company has been fueled by several high-profile AI partnerships, including Nvidia’s recently disclosed $2 billion investment to support more than five gigawatts of data center capacity by 2030.
At the same time, reports of potential layoffs at Meta also drew investor attention. According to sources cited by Reuters, the company is exploring plans to cut up to 20% of its workforce as it reallocates resources toward its rapidly expanding AI infrastructure investments. If implemented, the move would mark Meta’s largest restructuring since CEO Mark Zuckerberg declared 2023 the company’s “year of efficiency,” during which roughly 21,000 employees were laid off.
Meta’s AI ambitions come with an enormous price tag. The company forecasts $115 billion to $135 billion in AI spending in 2026, up sharply from about $72 billion in 2025. Much of this capital is directed toward its Superintelligence Labs, new AI chips, and large-scale data center projects.
Meta has also joined the broader industry race to build massive “AI factories,” with plans to invest up to $600 billion in data centers by 2028, including a recently announced $10 billion facility in Indiana.
As technology giants double down on AI infrastructure, the combination of massive capital spending and workforce restructuring is increasingly reshaping the future of the tech industry.
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