Meta’s Data Center Capacity for Sale
Meta Platforms Inc. (NASDAQ: META) is exploring the sale of its excess data center capacity to third parties as it struggles to monetize its significant capital expenditures. In the last quarter, Meta spent $30 billion on capital expenses, and it anticipates total expenditures of $130 billion to $145 billion for the year, primarily aimed at enhancing its artificial intelligence (AI) capabilities.
This initiative comes as Meta’s AI models have not seen substantial external adoption, resulting in excess capacity. CEO Mark Zuckerberg has indicated that other AI companies are interested in purchasing this capacity, although detailed financial arrangements remain unclear. The company’s advertising revenue grew 28% year-over-year to $61 billion, but it faces challenges in maintaining profitability due to rising expenses from AI investments.
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