Discussion

• @shiraovide Shira Ovide on threads

  For a sense of how bonkers the money is that Big Tech is spending on AI (and many other big ticket projects): Exxon spent $26.3 billion last year digging oil and gas out of the ground.  Google and Microsoft combined spent $26 billion IN THREE MONTHS on computer chips, servers, da…

• @paul_rietschka Paul Rietschka on threads

  Investment like this makes sense for Microsoft and Google, as they have cloud platforms heavily used by basically everyone.  Meta?  Not so much.  This isn't to say many of Google's ML initiatives will pan out, because they won't. …

• @carnage4life Dare Obasanjo on threads

  Nvidia shareholders after every big tech earnings call is about how much they're spending on AI infrastructure

• @alphaseeker84 Elliot on x

  @EricJhonsa Between META, GOOG and MSFT capex is expected to go up almost 50B over last year. Seems like AAPL will need to step up their capex spend significantly as well [image]

• @marceloplima Marcelo P. Lima on x

  Since 2012 Alphabet has spent 1/4 of a trillion dollars in capex, and Ruth told us to expect about $50 billion this year [image]

• @dag_investments @dag_investments on x

  Hi, my name is Jensen, but my friends call me capex. [image]

• @conorsen Conor Sen on x

  Combined capex spending of META/MSFT/GOOGL: FY 2007: $4.6 billion FY 2021: $63.9 billion FY 2024 (projected): $122.9 billion

• @buccocapital @buccocapital on x

  Zuck on why he ramped CapEx with Meta down 70%: “It came from being behind [what TikTok was doing]....most of the times where we make some decision that seems good is because we messed up before and don't want to make the same mistake” [image]

• @charlesfitz Charles Fitzgerald on x

  New York Times discovers CAPEX; struggles with apples-to-apples arithmetic. Looking forward to the clarification. [image]

• @hshaban Hamza Shaban on x

  Zuckerberg with a beard: A million dollars isn't cool. You know what's cool? $40 billion in capex. https://finance.yahoo.com/...

• @modestproposal1 @modestproposal1 on x

  The absolute dollars are astonishing. Capex is going to increase from $48B to $184B. But Gross Profit (ex fulfillment expense) is going to go from $208B to $714B.

• @investlikebest @investlikebest on x

  A crazy fact from @mjmauboussin. The biggest tech companies are spending twice as much on capex as energy companies. [image]

• @patrick_oshag Patrick OShaughnessy on x

  Microsoft's yearly data center spend for the next few years is more than that of the Apollo program (yes, adjusted for inflation)

• @ericjhonsa Eric Jhonsa on x

  $MSFT spent $14B on capex in FQ3, up from $11.5B in FQ2 and $7.8B a year ago. $GOOG spent $12B on capex in Q1, up from $11B in Q4 and $6.3B a year ago.

• @carnage4life Dare Obasanjo on x

  Google's market cap is at an all time high ($2T) and Microsoft saw a positive response on announcing huge AI spending while Meta stock tanked. Key difference is investors are no longer patient about returns. Microsoft and Google are making money from AI today via cloud & search. …

• @modestproposal1 @modestproposal1 on x

  Looking at Capex to Gross Profit (to normalize for biz models; I deduct fulfillment expense from AMZN) for GOOG/AMZN/META/MSFT. From 2017 to 2024, Capex/GP is surprisingly only up from 23.2% to 25.8%. MSFT: 13% -> 26% GOOG: 20% -> 22% AMZN: 48% -> 26.7% META: 19% -> 29.7% [image]

• @carnage4life Dare Obasanjo on threads

  Google's market cap is at an all time high ($2T) and Microsoft saw a positive response on announcing huge AI spending while Meta stock tanked.  Key difference is investors are no longer patient about returns.  Microsoft and Google are making money from AI today via cloud & search…

• @trengriffin Tren Griffin on x

  @davemcclure What does Meta currently profitably sell other than targeted advertising against user generated content?

• @trengriffin Tren Griffin on x

  @davemcclure Cross-selling is one way to reduce customer acquisition cost. But creating a new business from nothing is a hard problem. Le Cun suggested on Lex that Meta could sell productivity software to restaurants. Payments is possible. Neither is easy.

• @davemcclure Dave McClure on x

  oddly diff market reaction to Meta AI $pend vs. MSFT / AAPL — guessing this is due to historical Meta (over-)$pend on VR, hwvr this time seems like it's the right decision... wouldn't be surprised to see market revise their opinion in future.

• @mgsiegler M.G. Siegler on x

  As it was written... https://spyglass.org/...

• @wsjtech @wsjtech on x

  Meta had its worst trading day in 18 months after warning of years of AI investment. Google shares hit an all-time high https://www.wsj.com/...