TechFlow news, July 01, Serenity stated that market claims regarding Meta cutting capital expenditures due to "overbuilding" are distorted; the premise should be that it possesses significant excess computing capacity, but the current situation is closer to resources remaining tight.
It pointed out that cloud computing giant Google, due to its own computing constraints in March this year, previously reduced resource allocation to Meta, as Meta's internal projects occupied significant computing resources. Since then, Meta may have quickly faced computing constraints and signed large long-term contracts with cloud computing service providers.
Serenity believes that even if Meta has some excess capacity, it is more likely to opt for external sales, especially given that relevant contracts have a "take-or-pay" nature. Overall, as independent computing infrastructure continues to expand, Meta's future capital expenditure guidance may instead be further increased.
