Meta's Compute Ambitions: Why the Neocloud Sell-Off Is Misguided
The article argues that Bloomberg's suggestion that Meta could become a "Neocloud" (like Coreweave or Nebius) is misinterpreted by the market, which reacted with sell-offs and overcapacity fears. The author contends Meta's datacenter and compute procurement will actually accelerate, not slow down, citing that Meta has contracted over 5GW of capacity in just the first six months of the year, with capex expected to be "shockingly high" by 2027. The piece pushes back against both the sell-off and overcapacity narratives.
Jeremie Eliahou Ontiveros, Max Kan, Joey Brookhart, Crystal Huang, Dylan Patel4d ago10 min readenInsight
Key quotes
We believe that both takes are erroneous and that Meta's datacenter & compute procurement will accelerate, not slow down.
Capex in 2027 will be shockingly high.
In just the first six months of the year, Meta has contracted over 5GW of capacity across Cloud & Colo, and that doesn't even include all their accelerating self-build activity.
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