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

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113 points 1vuio0pswjnm7 | 4 comments | 02 Nov 25 05:33 UTC | HN request time: 1.082s | source
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JonathanBeuys ◴[02 Nov 25 07:20 UTC] No.45788466[source]▶
I have not looked into Meta, but when I look at the growth of Alphabet's cloud revenue, it looks pretty solid:

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.

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ares623 ◴[02 Nov 25 07:23 UTC] No.45788479[source]▶
That's literally just a line go up graph with no details whatsoever? Also, "According to Perplexity" why is it not "according to Alphabet"?
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1. JonathanBeuys ◴[02 Nov 25 07:29 UTC] No.45788504[source]▶
Which additional details would you like to see?

According to Perplexity because instead of going through 20 earnings reports myself, I outsourced the task to Perplexity and then manually checked a few of the numbers to be reasonably sure they were correct.

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2. ares623 ◴[02 Nov 25 07:36 UTC] No.45788538[source]▶
Oh, gotcha. I thought it was Perplexity themselves reporting about Google's earnings or something.

Like how much of it is actually the "AI" part of the business for a start?

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3. JonathanBeuys ◴[02 Nov 25 07:47 UTC] No.45788588[source]▶
I would think that no matter what the percentage of AI in the revenue is - mankind keeps automating their work via software. And so far, we automated only very little. We probably can keep increasing it at 30% pa for 10 years. That would mean we just automate 14x more than we do now. In 10 years, that seems not even fast to me.
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4. ares623 ◴[02 Nov 25 08:00 UTC] No.45788635{3}[source]▶
Wow