"Zuckercorp has already warned of "notably larger" spending in 2026, but the company earned "only" $62 billion in profit last year, up from $39 billion in 2023. So even if it used all of its near-liquid assets - as of Q3, Meta had about $44.5 billion in cash, cash equivalents, and other marketable securities - and plowed every dollar of profit into bit barns for the next few years, Meta would be hard pressed to pull this off."
"All signs point to Meta doing just that. Last month, the parent company of Facebook and Instagram revealed plans to sell $30 billion in bonds, some of which won't mature for 40 years, to finance its expansion. Meanwhile, in late October, Meta entered into a joint venture with Blue Owl Capital to finance its Hyperion datacenter in Richland Parish, Louisiana, which is expected to top 5 gigawatts of capacity when it's completed in 2030."
"Under that agreement, Blue Owl would develop and own the datacenter campus while Meta would provide construction and property management. Once complete, Meta will lease the campus back from the joint venture on a recurring basis. Funds represented by Blue Owl would hold an 80 percent interest in the joint venture, while Meta will retain a 20 percent stake in the development."
Meta announced plans to invest $600 billion in U.S. datacenter infrastructure and jobs by 2028, exceeding OpenAI's $500 billion Stargate initiative. Achieving the target would require nearly tripling capital expenditures from the $70–72 billion expected in 2025. Meta reported $62 billion in profit last year and held about $44.5 billion in near-liquid assets as of Q3, making self-funding unlikely. The company plans to sell $30 billion in bonds and entered a joint venture with Blue Owl Capital to finance the Hyperion datacenter in Louisiana, where Blue Owl will own 80 percent and Meta will retain 20 percent and lease back the campus.
Read at Theregister
Unable to calculate read time
Collection
[
|
...
]