Changes in US stocks | Meta (META.US) rose more than 6%, computing power costs far lower than market expectations

The Zhitong Finance App learned that Meta (META.US) rose more than 6% to $671.24 on Friday. According to recent media reports, an internal memorandum shows that Meta's cost of building AI infrastructure is far lower than market expectations. The cost per gigawatt of computing power is close to US$22 billion, far lower than Wall Street's estimate of US$45 billion. The significant cost savings respond to investors' concerns about the return on its huge capital expenditure.

In an interview with the media recently, Zuckerberg said that currently the entire AI industry is facing the problem of tight computing power resources. No company would think that it has “too many” computing resources, and almost all of Meta's current computing power is used for internal AI research and product training.

However, he said that if the market provides a sufficiently high rental price, the company will also evaluate whether to rent out part of the computing power resources to external customers rather than use them all for internal projects. He said, “If the external price for computing power is high enough, in some cases, renting out the computing power may be more valuable than using it all internally.”

Earlier this month, there were media reports that Meta is studying the launch of a cloud computing business, hoping to turn the company's huge data center and AI infrastructure into a new revenue stream. In response, Zuckerberg said that Meta “has the ability to build a cloud computing business at any time,” but this does not mean that the company has built up excess computing power resources.