Serenity: Meta is not cutting capital expenditure due to “overbuilding”; computing power remains constrained

Odaily reported that “White-Haired Stock God” Serenity posted on X platform, stating that there is significant misinformation regarding Meta cutting capital expenditure due to “overbuilding.” Meta would only sell computing power if there is excess capacity, and the current situation appears to be the opposite. 

Hyperscalers such as Google cut computing power allocations to Meta in March due to their own capacity constraints, as Meta’s internal projects consumed excessive resources. Meta immediately faced computing power limitations afterward and was forced to sign massive contracts exceeding US$48 billion with Neoclouds including CoreWeave and Nebius.

Meta only sells computing power when there is excess capacity; notably, its large contracts with Neoclouds are mostly take-or-pay agreements. Serenity expects Meta’s guided capital expenditure to rise as it builds out more independent capacity.