Meta bumped 2026 capex forecast up to $145B for AI boom investors flinched(fortune.com)
fortune.com
Meta bumped 2026 capex forecast up to $145B for AI boom investors flinched
https://fortune.com/2026/04/29/meta-zuckerberg-145-billion-ai-spending-roi/
5 comments
Genuinely asking - if it's a bubble, why are cloud providers scrambling to buy these chips? They're not dumb, they only buy what customers are actually paying for.
They're not dumb, they only buy what customers are actually paying for.
Don't look now but none of these AI cloud providers are actually profitable. They are buying/spending much, much more than what customers are paying for. As someone put it, they are literally lighting huge piles of money on fire.
There are 2 reasons for this:
1) Fear (of missing out)
2) Greed.
This is being driven by raw, naked speculation at the venture capital level that is unprecedented.
Consultants at Bain & Co. estimate that justifying current AI spending will require $2 trillion in annual AI revenue by 2030.
By comparison, this is more than the combined revenue of Amazon, Apple, Alphabet, Microsoft, Meta and Nvidia, and more than five times the current size of the entire global subscription software market.
Don't look now but none of these AI cloud providers are actually profitable. They are buying/spending much, much more than what customers are paying for. As someone put it, they are literally lighting huge piles of money on fire.
There are 2 reasons for this:
1) Fear (of missing out)
2) Greed.
This is being driven by raw, naked speculation at the venture capital level that is unprecedented.
Consultants at Bain & Co. estimate that justifying current AI spending will require $2 trillion in annual AI revenue by 2030.
By comparison, this is more than the combined revenue of Amazon, Apple, Alphabet, Microsoft, Meta and Nvidia, and more than five times the current size of the entire global subscription software market.
True, but AWS lost money for like 7 years before it became a cash printer...
I'm not saying AI is AWS, just asking - how do you tell the difference between a bubble and early infrastructure?
I'm not saying AI is AWS, just asking - how do you tell the difference between a bubble and early infrastructure?
how do you tell the difference between a bubble and early infrastructure?
This is a judgment call that has to do with scale.
What Amazon offered with AWS was a well proven service. And what they spent on development was no where close to what is being spent on AI --- which is still largely unproven.
This is a judgment call that has to do with scale.
What Amazon offered with AWS was a well proven service. And what they spent on development was no where close to what is being spent on AI --- which is still largely unproven.
When Zuck goes all in, you know it's going nowhere --- just like the metaverse.