[NEW YORK] The Metaplatform is funding the large infrastructure needed to power AI (AI) and is pushing for efforts to introduce external partners to offload US$2 billion data center assets as part of its strategy to disclose plans for filing on Thursday (July 31).
This strategy reflects wider changes among high-tech giants long known for their own-funded growth as they work on the rising costs of building data centers to support generating AI and supplying electricity. The social media giant said earlier this week that it is seeking ways to collaborate with financial partners to collaborate on data centres to help fund large capital expenditures next year.
“We are looking for ways to work with our financial partners to collaborate on data centres,” Meta Chief Financial Officer Susan Lee said in a call after revenues Wednesday.
The company still hopes to fund much of its capital expenditure internally, but Li said some projects could attract “critical external funding” and provide more flexibility if infrastructure needs to shift over time.
The company had no confirmed deals to announce, she said.
However, Meta's quarterly declaration disclosures indicate that the plan is being strengthened. In a quarterly filing on Thursday, Meta approved plans to dispose of certain data center assets in June, reclassifying the land worth US$2.04 billion and construction of progress as “sale.”
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These assets were expected to contribute to third parties within the next 12 months for the joint development data center.
Meta did not record any losses in reclassification. This value assets with low cargo amounts or low cost of sales. As of June 30th, the total assets sold were USD 3.26 billion, according to the filing.
Meta declined to comment on the story.
CEO Mark Zuckerberg is planning to invest hundreds of millions of dollars to build a “supercluster” of AI data centers for Superintelligence.
“Only one of these covers a key part of Manhattan's footprint,” he said.
On Wednesday, Instagram and WhatsApp owners raised the lowest annual capital expenditure to US$2 billion, up from US$66 billion to US$72 billion.
We reported stronger advertising sales than expected thanks to AI-driven improvements in targeting and content delivery. Executives said these benefits are helping to offset the rising infrastructure costs associated with long-term AI pushes. Reuters
