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    Meta readies $25B bond sale as soaring AI costs trigger stock sell-off

    (www.ft.com)
    113 points 1vuio0pswjnm7 | 12 comments | 02 Nov 25 05:33 UTC | HN request time: 1.564s | source | bottom
    1. aaronbrethorst ◴[02 Nov 25 06:02 UTC] No.45788131[source]▶
    This is fine. https://www.brethorsting.com/blog/2025/10/the-data-center-bu...
    replies(2): >>45788204 #>>45788261 #
    2. antoniuschan99 ◴[02 Nov 25 06:23 UTC] No.45788204[source]▶
    AI build out is more of an extension of datacenter build out though. All the hyperscalers lead AI build out.

    Fiber dailed because the telcos overbuilt and demand lagged. When Amazon introduced AWS it succeeded right away because there was lots of demand.

    Jeff Bezos Ted Talk 2003 - https://youtu.be/vMKNUylmanQ

    3. polar8 ◴[02 Nov 25 06:37 UTC] No.45788261[source]▶
    Cloud and AI infra already pull in $300B+ a year. Data center vacancy under 1% and they’re power utility constrained. The fiber guys built ahead of demand, these guys are printing money and can’t build new printers fast enough.
    replies(2): >>45788270 #>>45796394 #
    4. hagbarth ◴[02 Nov 25 06:39 UTC] No.45788270[source]▶
    But Meta specifically needs returns from AI products to justify the capex. Google and Microsoft eg. have profitable cloud businesses from where they can rent out GPU compute. Meta’s bet is far more risky.
    replies(1): >>45788463 #
    5. baxtr ◴[02 Nov 25 07:19 UTC] No.45788463{3}[source]▶
    True. But then again they own the consumer side.

    If Meta hadn’t invested in AI recommendations a while back they would have lost against TikTok big time.

    replies(1): >>45795521 #
    6. windexh8er ◴[03 Nov 25 03:15 UTC] No.45795521{4}[source]▶
    As the Facebook generation dies out, so does Facebook. I just don't see it. Meta will have to continue to buy competition and hope that the ad market stays a racket forever. The only reason Meta is still relevant is advertising, just the same as Google. Eventually enough people will realize it for what it's worth: anti-competitive enshittification in order to preserve multi-billion dollar companies that have products and services that suck so bad you'd have a hard time paying people to use if they were startups today.
    replies(4): >>45795741 #>>45796041 #>>45798031 #>>45801343 #
    7. matthewdgreen ◴[03 Nov 25 04:02 UTC] No.45795741{5}[source]▶
    Maybe the plan is to buy up all the companies that currently pay them for ads?
    8. robkop ◴[03 Nov 25 05:10 UTC] No.45796041{5}[source]▶
    Being skeptical of all the numbers I see - it still seems instagram is on roughly even footing with TikTok for upcoming generations.

    I don’t doubt they may destroy their own product (like google search) but I do think it’s going to take a long long time

    replies(1): >>45799249 #
    9. pfannkuchen ◴[03 Nov 25 06:31 UTC] No.45796394[source]▶
    Is the edge node revenue in the customer/infra graph from investor spend or customer spend? Almost certainly the former, right?
    10. patapong ◴[03 Nov 25 11:39 UTC] No.45798031{5}[source]▶
    While facebook does seem to decline somewhat in use in my younger friendcircle, Instragram and Whatsapp seem to be larger than ever.
    11. bn-l ◴[03 Nov 25 14:23 UTC] No.45799249{6}[source]▶
    And now threads which apparently is quietly growing
    12. solumunus ◴[03 Nov 25 17:03 UTC] No.45801343{5}[source]▶
    Very vibes based take.