The Hyperscalers Are Hyper-Spending

Motley Fool Money

The Motley Fool

Business, Investing

4.4 • 3K Ratings

🗓️ 30 January 2025

⏱️ 22 minutes

🔗️ Recording | iTunes | RSS

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Summary

Meta and Microsoft are now spending roughly 30% of their annual revenues on capital expenditures. What are they hoping to get from all that investment? (00:14) Asit Sharma and Mary Long break down earnings from Meta and Microsoft. They also discuss: - Whether the DeepSeek story changes how investors should view off-the-walls AI spending. - The future of Reality Labs. - Microsoft’s $13B-and-growing AI business. - Why “fungible fleet” is a potentially ominous phrase for Sam Altman Companies discussed: META, MSFT, NVDA Host: Mary Long Guest: Asit Sharma Producer: Ricky Mulvey Engineer: Rick Engdahl Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0	We've reached peak earning season, and you're listening to Motley Full Money.
0:13.7	I'm Mary Long, joined today by Asset Sharma.
0:16.4	Asset, thanks for being here.
0:18.3	Mary, thank you for having me once again.
0:20.5	I'm glad you're here.
0:21.5	I'm glad we got to talk for a solid 22 minutes before we even started recording.
0:25.4	I'm sure we'll continue that conversation afterwards.
0:28.3	We've wasted enough of Rick and Ricky's time.
0:30.7	Now let's get to the show.
0:32.2	Yeah, who's our next victim?
0:33.9	Our listeners.
0:34.8	Our listeners.
0:35.5	No, no, no.
0:36.0	Let's do it. We'll put things on a platter for the listeners.
0:38.6	We had a lot of big tech earnings out yesterday.
0:41.1	We'll kick things off with meta.
0:42.7	Maybe let's start by focusing on their expenses, because that's a big part of the story and
0:47.0	the focus here, in particular capital expenditures that are being spent to rev up and build
0:52.7	up AI infrastructure.
0:56.4	Meta plans to continue increasing their capital expenditure and invest between $60 to $65 billion into building a
1:02.7	four million square foot data center campus to energize AI development. That's about 70% higher
1:09.5	than what Wall Street analysts were expecting that
	...

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