In today’s Digest, we cover Meta’s ad business set to reach $240bn amid a market surge, Alibaba’s AI revenue posting its 11th straight quarter of triple-digit growth, and Netflix being accused of spying in a Texas lawsuit.

Meta eyes $240bn ad haul in 2026

Meta is projected to strengthen its dominance in digital advertising after its ad business grew 22% to USD$196bn (£154.8bn) in 2025, according to WARC Media forecasts. The company is expected to record another 22.3% increase this year, pushing advertising revenue to approximately USD$240bn (£189.6bn), as marketers continue to prioritise spending across platforms such as Instagram, Facebook, and Reels. 

According to WARC Media and Omdia data, the US remains Meta’s largest advertising market, accounting for more than 40% of ad spend across both Facebook and Instagram, followed by the UK and Australia. However, advertiser momentum is increasingly concentrated around Instagram, with more than half of global marketers planning to increase spending on the platform this year, compared with only a quarter for Facebook.

Alibaba AI revenue hits 11th quarter of triple-digit growth 

Alibaba Group has reported triple-digit growth in revenue from its AI-related products for the eleventh consecutive quarter. The company disclosed for the first time that AI-related products generated 8.97bn yuan (£1.04bn) during the quarter ended 31st March, helping drive a 3% increase in overall revenue to 243.4 bn yuan (£26.4bn). While the figure came slightly below market expectations, it marked an improvement from the previous quarter’s growth rate.

Alibaba’s cloud-computing division remained a major growth engine, with revenue rising 38% year-on-year to 41.6 bn yuan (£4.5bn), extending its streak of double-digit quarterly expansion. AI-related products now account for roughly 30% of external revenue within Alibaba’s Cloud Intelligence Group, highlighting how central AI has become to the company’s long-term growth strategy.

Texas sues Netflix over spying claims

Texas has filed a lawsuit against Netflix, accusing the platform of collecting and monetising user data while designing features that allegedly encourage addictive viewing behaviour among children and families. The lawsuit, brought by Texas attorney general Ken Paxton, claims Netflix misled consumers for years by portraying itself as a privacy-focused alternative to major advertising platforms while quietly tracking viewing habits and sharing data with ad tech and commercial data brokers.

The complaint also targets product design elements such as autoplay, arguing that Netflix intentionally used dark patterns to maximise screen time and user engagement. Texas says the company’s practices violate the state’s Deceptive Trade Practices Act and is seeking penalties that could reach up to $10,000 (£7,900) per violation. Netflix will also be required to delete improperly collected data and stop targeted advertising without consent.