Capital Expenditures

Meta is significantly boosting AI investments, earmarking $115-135 billion for AI infrastructure in 2026. Despite past investor concerns, strong Q4 earnings and 24% revenue growth, largely from advertising, have bolstered confidence. CEO Mark Zuckerberg aims for “personal super intelligence,” focusing on data center expansion and developing advanced AI models, including a successor to Llama, codenamed “Avocado.” The company’s financial strength from advertising provides the latitude for this ambitious AI-driven future.

TotalEnergies and Galp have signed a strategic partnership reshaping Namibia’s offshore licences. TotalEnergies will acquire a 40 % operated interest in PEL 83 (Mopane discovery) and carry 50 % of Galp’s exploration and appraisal CAPEX, to be repaid from future cash flows. Galp will receive a 10 % participating interest in PEL 56 (Venus discovery) and 9.39 % in PEL 91. A two‑year program will drill three wells, aiming to de‑risk Mopane and achieve a final investment decision for Venus by 2026. The transaction, pending Namibian approvals, closes in 2026.

words.Ben Powell, BlackRock’s Middle East‑APAC chief strategist, says AI‑related capital spending is far from peaked, with “picks‑and‑shovels” firms such as chipmakers, power generators and copper‑wire producers set to reap the biggest gains. He notes the ongoing capex surge, rising data‑center power demand and growing use of credit markets by tech giants, suggesting more funding will flow to hardware, energy and infrastructure suppliers rather than model developers, prompting “positive surprises” for those stocks.

Roblox shares fell 15% after the company projected higher capital expenditures, raising margin concerns. While Q3 revenue surged 48% to $1.36B and bookings jumped 70% to $1.92B, exceeding expectations, increased DevEx costs and safety investments contributed to the revised outlook. Roblox raised its full-year bookings guidance but average bookings per DAU missed estimates. The company is also facing pressure to improve child safety and is involved in related lawsuits, prompting investments in safety measures and collaboration with safety organizations.

OpenAI and major hyperscalers like Microsoft, Alphabet, Meta, and Amazon are significantly increasing capital expenditures to build AI infrastructure. This investment race, driven by the demands of generative AI, focuses on supercomputing data centers and Nvidia AI chips. Analysts project substantial capex growth, with total hyperscaler spending potentially reaching $550 billion next year. While these companies aim for AI dominance, they must balance investments with revenue growth and market expectations. Even Apple plans to increase AI spending, signaling a strategic shift.

Standard Lithium (SLI) plans a $120 million public offering of common shares, aiming to fund capital expenditures at its South West Arkansas and Franklin projects. Underwriters, led by Morgan Stanley and Evercore ISI, have a 30-day option to purchase up to 15% more shares. The offering is subject to market conditions and could dilute existing shareholders if completed. Proceeds will also support working capital and general corporate purposes.

Sable Offshore Corp. (SOC) priced an upsized public offering of 8.7 million shares at $29.50 each, targeting ~$256.5 million in gross proceeds. Underwriters J.P. Morgan, Jefferies, and TD Cowen secured an option for an additional 1.3 million shares. Proceeds will fund capital expenditures and corporate needs, with closure expected by May 23 pending approvals. The Houston-based firm, focused on California’s Santa Ynez Unit offshore assets, highlights operational expertise amid regulatory and ESG challenges. Analysts note the pricing reflects cautious optimism as energy equities rebound, though supply chain and permitting risks persist. SEC-declared effective May 1, the offering expands distribution through co-managers including Benchmark Company and Pickering Energy Partners.