Meta Platforms Inc. is aggressively pursuing its artificial intelligence ambitions through a two-pronged approach: securing massive, long-term energy supplies and acquiring strategic AI technology. Recent developments highlight both the scale of its infrastructure plans and the geopolitical complexities it faces.
Energy Security Takes Center Stage
To power its next-generation “Prometheus” AI data centers, Meta has embarked on a significant energy offensive. The company has formed partnerships with nuclear energy firms Oklo, TerraPower, and power generator Vistra to bring additional nuclear capacity online by the late 2020s.
A cornerstone of this plan is a proposed 1.2-gigawatt nuclear campus in Ohio, to be developed jointly with Oklo. Site preparation is slated to begin in 2026, with operations targeted for 2030. Furthermore, Meta has secured a 20-year power purchase agreement (PPA) with Vistra for electricity from existing nuclear plants. The collaboration with TerraPower focuses on advancing sodium reactor technology.
According to Rosenblatt Securities analyst Barton Crockett, these agreements position Meta “at the forefront of hyperscalers in adopting nuclear power,” substantially mitigating the long-term power supply risk for its AI clusters. The move comes amid intense competition for energy resources among the “Magnificent Seven” tech giants. As AI models grow larger, electricity availability has become a critical bottleneck for data center expansion. By locking in 6.6 gigawatts of low-carbon baseload capacity, Meta aims to insulate itself from potential grid constraints post-2026 and gain an edge over rivals.
Chinese Regulators Examine a Key Acquisition
Simultaneously, Meta faces new regulatory uncertainty from China. Authorities there have initiated a security review of the company’s approximately $2 billion acquisition of Manus AI.
It is important to note that this Manus AI is not the Dutch haptics company of the same name, but rather a Singapore-based developer of “generalist AI agents.” These software agents are designed to autonomously execute complex tasks such as research or travel bookings, representing a building block for the next evolution beyond conventional chatbots.
The investigation focuses on export control issues, specifically examining how core technology and personnel were transferred from Manus’s former Beijing operations to Singapore. This scrutiny raises the possibility of imposed conditions or even a forced partial divestment.
The outcome is critical for Meta, as Manus is viewed as a key component for building its “agent economy.” Integrating this technology into services like WhatsApp, Messenger, and other apps within the “Family of Apps” is considered a major lever for future monetization. Restrictions stemming from the Chinese review could complicate or delay this roadmap.
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Wall Street Weighs In
Despite these new uncertainties, the prevailing sentiment on Wall Street remains positive, largely due to the strategic importance of the nuclear energy deals in underpinning Meta’s massive AI investments.
Key analyst perspectives include:
- Rosenblatt Securities maintains a Buy rating with a price target of $1,117, notably higher than many peers. The firm argues the nuclear power contracts are a crucial step in securing expected capital expenditures (Capex) exceeding $100 billion in 2026.
- Cantor Fitzgerald sets its price target at $750, emphasizing that the power agreements bolster the long-term AI revenue pipeline.
- Guggenheim holds a target of $800 but explicitly cites the regulatory friction in China as a factor requiring close monitoring.
Market valuation already reflects high expectations, with Meta shares trading at a price-to-earnings ratio of approximately 28.8. This signals a growth premium but also underlying nervousness regarding the enormous capital commitment for AI expansion.
Technical Market Perspective
The market’s reaction to this mix of news has been solid but not overheated. Shares closed Friday at $653.06, sitting about 7.8% below their 52-week high of $708. The stock remains comfortably above its key moving averages and has advanced 17.5% over the past 30 days, indicating regained positive momentum.
From a technical standpoint, the equity is trading near a resistance zone. The Relative Strength Index (RSI) reading of 47.1 does not signal overbought conditions. However, elevated 30-day volatility, annualized at over 55%, underscores the market’s current sensitivity to headlines concerning AI and regulation.
Looking Ahead: Two Critical Milestones
Two issues will dominate the narrative in the coming weeks. First, the upcoming Q4 earnings report will be pivotal in providing clarity on planned investments for 2026—specifically, how aggressively Meta intends to steer its Capex toward the triple-digit billion range. Second, the progression of the Manus review in China will reveal the level of global regulatory headwinds Meta’s strategy for autonomous AI agents may encounter.
In the near term, a combination of concrete Capex guidance and progress on nuclear projects could reinforce the positive AI narrative. Conversely, stringent conditions or delays in the Manus integration would necessitate a reassessment of the profit potential in the agent business, with corresponding potential for increased stock price volatility in either direction.
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