"The social media group had hired Citigroup and Morgan Stanley to raise up to $25bn in debt, ranging from five to 40 years in maturity, "

I totally understand what OpenAI and Google are trying to do with AI but I never understood Meta's angle.

What's Meta's AI product?

Together with the debt payments needed then, this will do wonders for the stock. I’m sure.

https://x.com/JonathanBeuys/status/1984882268817519036

That is revenue from real world usage of their datacenters. Usage their customers would not pay for if it did not have a positive ROI.

A pretty stable growth of 30% per year for the last 5 years. At a current level of about $50B per year.

What is the value of it, if it continues like this for another decade? Revenue would be at roughly $1T/year then.

In the face of this real usage and the growth of it, spending tens of billions of dollars on building out infrastructure looks ok to me.

There's one problem. They seem unlikely to be first to build ASI given that Google and OpenAI seem a fair bit ahead and there's stiff competition from xAI, Anthropic, DeepSeek et al.

The leaderboard seems to have Google, OpenAI and Antropic ahead, then X and four Chinese firms, Z, DeepSeek, GLM and Kimi, with Meta behind that.

I'm not sure if they have a decent strategy to get ahead? It seems to me the best bet would be to have some very smart people do a better algorithm rather than building more data centers.

Facebook, Instagram, etc... these are all only valuable as network effect monopolies.

Investment into AI can torch billions of dollars and still be worthwhile so long as it's done in the service of protecting those monopolies, because LLMs are both intrinsically threatening to Meta's existence and intriniscally valuable for building better recommender systems when platform monopolists like Apple add privacy protections (cutting Meta off from the data spigot that powers its revenue streams).

Once AIs with no wallets outnumber humans on Facebook, Meta has an existential problem. There is no way to avoid the inevitable, the best one can do is embrace it, and 25 billion is nothing compared to losing your platform.

Why is Oracle going into debt for AI? What are they doing