Meta Platforms Inc. (NASDAQ:META) shares are down approximately 3% over the past week as AI regulatory pressure and a surging capital expenditure budget continue to keep the company in the headlines.
Government Pressure on AI Models
The Trump administration has been pressing Meta to submit its AI models for voluntary government review, according to a New York Times report. Meta is currently the only major U.S. AI developer that has not reached an agreement to voluntarily share its models with the Center for AI Standards and Innovation—the government’s AI safety group housed within the Commerce Department. OpenAI, Anthropic, Google, xAI, and Microsoft have all agreed to submit their models.
Meta said it hopes to sign the agreement soon, stating it shares “the administration’s goal of advancing U.S. leadership on robust and secure frontier AI.” The development comes after President Donald Trump signed an executive order on June 2 giving the government responsibility for AI reviews.
The Capex Overhang
Beyond this week’s news, the bigger picture weighing on the stock is Meta’s capital expenditure trajectory. The company plans to spend $135 billion this year, up from prior guidance of $115 billion and more than double last year’s $72 billion in capex. That scale of spending continues to pressure near-term multiple expansion, even as the underlying business remains strong, and remains the primary reason the stock has struggled to reclaim its highs despite strong revenue growth.
Meta Shares Edge Lower
META Price Action: At the time of publication, Meta shares are trading 0.15% lower at $556.83, according to data from Benzinga Pro.
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