May. 27 at 9:19 PM
$META is one of the most obvious buy cases among big tech. The main concern is that it could end up spending hundreds of billions in capex and overbuilding compute capacity. But even if that happens, META could easily pivot into a cloud provider like
$AMZN,
$MSFT, and
$GOOGL, selling excess compute to external customers.
Zuck has already addressed this on earnings calls, saying that almost every week customers come asking for compute or API services, and that if they ever overbuilt, it could simply become another business option.
In reality, demand is exploding. Anthropic has signed a
$45B deal and will reportedly pay SpaceX about
$1.25B per month through 2029 to rent
$NVDA GPUs. Compute demand isn’t just growing, it’s accelerating.
In this environment, it’s hard to imagine META struggling to find buyers for its capacity.
