Meta News
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Hi SZ,
The deal structures like discounted share sales, non-cash payments, strategic terms. The final valuation of Scale AI, based on Meta’s acquisition of a 49% stake for $14.8 billion, vs $28 billion for the whole. I think just because the 'valuation' is X doesn't meant you pro rata that value for a given percentage, given this is a very big deal comprising a very long list of add ons. The CEO is now working at Meta so maybe there is a massive sign on incorporated in the deal.
When Xai raises its next $20B they have already stated 'at a valuation between 120-200 billion'. Does that make sense-no, not really
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Meta begins monetising news on WhatsApp, backed by vast user base
Meta has started monetising news content on WhatsApp by allowing publishers to earn revenue through in-app advertising, paid subscriptions, and premium content via WhatsApp Channels. This move marks a shift in WhatsApp’s traditionally ad-free model and positions it to compete more directly with platforms like Telegram for news distribution.
The decision is underpinned by Meta’s immense global reach. As of the fourth quarter of 2024, Meta reported 3.35 billion daily active users across its core platforms—Facebook, Instagram, WhatsApp, Messenger, and the growing Threads app. This vast user base has helped drive profitability, with Meta’s average revenue per user reaching $49.63 in 2024, up from $44.60 the previous year.
Meta’s dominance in the digital space provides a strong foundation for this latest monetisation push on WhatsApp.
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The crazy world of AI. What's crazy is he 'failed', allegedly
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Meta have their wallet out hoovering up the AI elite. Crazy numbers.
Meta Platforms has offered exceptionally large compensation packages to key hires for its new “superintelligence” division, including a deal worth over $200 million for Ruoming Pang, a former distinguished engineer at Apple, Bloomberg reported, citing people familiar with the matter.
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Nice job ..if you can get it
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Nice job ..if you can get it
@Ducati996R said in Meta News:
Nice job ..if you can get it
I studied AI as part of a degree back in the early 2000s. It was pretty rudimentary stuff then and I've not kept up with it since, but still...
I'd be happy to take on a role at a salary as low as $5m/yr and if it doesn't work out after a few months, there'd be no hard feelings if I was let go.
I should probably let them know I'm available since they haven't been in touch yet...
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A,
I'll put a good word in with Mark when we meet
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I’m sure I mentioned that Wendy deals directly with Mark and also The Donald.. but has never been on a private jet or island with either of them!!
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it's marvellous, Jim
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breaking:
Zuckerberg just posted the following on XFor our superintelligence effort, I'm focused on building the most elite and talent-dense team in the industry. We're also going to invest hundreds of billions of dollars into compute to build superintelligence. We have the capital from our business to do this.SemiAnalysis just reported that Meta is on track to be the first lab to bring a 1GW+ supercluster online. We're actually building several multi-GW clusters. We're calling the first one Prometheus and it's coming online in '26. We're also building Hyperion, which will be able to scale up to 5GW over several years. We're building multiple more titan clusters as well. Just one of these covers a significant part of the footprint of Manhattan.Meta Superintelligence Labs will have industry-leading levels of compute and by far the greatest compute per researcher. I'm looking forward to working with the top researchers to advance the frontier!
There was a rumour 3-4 months ago that Meta gave the green light to a $200B DC-something they denied. Looks like it's true.
Whilst no confirmation, one undeniable fact is that SMCI are their go-to ai rack supplier at scale. Interesting times
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From the Tech Podcast 'Access' hosted by Alex Heath-guest Mark Zuckerberg, Meta CEO, discussing the companies Capital Expenditure plans between now and 2028, 3 ish years and $600 billion. Zuck thinks maybe it won't be enough. Interesting, but remember what we have discussed previously. The money has been committed and the systems will be built. Our visibility is 2-3 years out and that is better than we could ever hope for in terms of investment clarity.
The rebuttal to the tech naysayer bubble holds that massive capital expenditure (capex) on AI will persist, driven by the race to achieve Artificial General Intelligence (AGI) or Superintelligent AI (SAI), regardless of short-term monetisation challenges. The argument is that industry leaders—Big Tech, startups, and investors—have committed to a long-term vision where the transformative potential of AGI/SAI justifies sustained investment. The "die has been cast" reflects a point of no return: billions(or trillions) in infrastructure (data centres, GPUs, energy) and talent have already been allocated, and pulling back risks ceding ground to competitors. This leap of faith assumes that breakthroughs will eventually yield exponential returns, even if current ROI is unclear.
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Meta, Blue Owl to Finalise Record $30 Billion Private Financing Deal for Louisiana AI Data Centre
Meta is set to complete an approximately $30 billion private capital financing deal — the largest of its kind on record — to fund Meta’s advanced AI data infrastructure project in Louisiana, Bloomberg News reported.
Meta and alternative asset manager Blue Owl Capital will share ownership of the Hyperion data centre site in Richland Parish, Louisiana, with the technology giant retaining 20% of the asset. Hyperion is the largest of Meta’s 29 global data centres — a 4-million-square-foot complex located in rural Louisiana.
Morgan Stanley arranged more than $27 billion in debt and roughly $2.5 billion in equity through a special purpose vehicle (SPV) to finance the development, according to the report. The transaction has been structured through this SPV to support large-scale infrastructure investment.The site is 2,250 acres. It's gigantic
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Meta’s $16 Billion Tax Charge Explained: Deferred Tax Accounting, Non-Cash Nature. It's not even a cashflow, rather it's an accounting entry. For non accountants, deferred tax is a mysterious number which must be reported yet may never be actually paid because it stems from tax treatment on acquired assets(depreciation) and liabilities(certain lease/finance obligations) which over time often grow so the balance just gets bigger! It aligns with the accounting principle of 'accrual accounting', i.e account for the substance of the transactions not the timing of events such as physically paying(which could be a years upfront for Eg). It doesn't work in this situation because the law change meant the calculation was completely wrong. Fit for purpose? Well it's the best we have and clearly there are a lot of people out there that just dont understand numbers very well. And whilst I'm not here tooting my horn, I am Chartered and my mentor was probably the greatest living 'Accountant'-headed PWC in 3 countries and globally and headed the Actg standards board in two countries.
Meta’s third-quarter 2025 results were overshadowed by a one-off $15.9 billion tax charge, which reduced reported net income to around $2.7 billion from what would otherwise have been approximately $18.6 billion. At first glance, the figure appeared dramatic, but in reality the impact is entirely non-cash and arises from deferred tax revaluation — an accounting adjustment triggered by recent changes in US tax legislation (the so-called “Big Beautiful Bill”).
Deferred Tax Treatment Explained
When tax laws change, companies are required to revalue their deferred tax assets and liabilities to reflect the new expected future tax rates. These deferred balances represent timing differences — taxes that will be paid or saved in future periods, not current cash obligations. So the big hit now means much smaller charges in the future, maybe even positive Nr1
Meta’s revaluation produced a large non-cash expense on its PNL this quarter, reducing reported profit but leaving operating cash flow unaffected. In fact, Meta indicated it expects lower cash tax payments in future years as a result of the same legislation.Underlying Performance vs. Expectations
Excluding the one-off charge, Meta’s adjusted earnings per share (EPS) came in at roughly $7.25, ahead of market expectations of around US $6.90. Revenue reached $51.2 billion, up about 26 per cent year-on-year, driven by ongoing strength in advertising demand and AI-powered recommendation systems.
Operationally, the company exceeded analyst expectations across nearly every metric except GAAP profit, which was distorted by the accounting adjustment.Record earnings and margins. The reaction is simply -stupid and a great opportunity for buyers. It won't last imo.
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Adam, thanks for the explanation, market 'reactions' can be annoying at the best of times ! I did wonder what all the fuss was about when they seem to be doing well, can't wait till their AI is fully built/integrated, it'll be a powerhouse for data/advertising for sure..
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That's the good part, it's only annoying not a problem. Here's a company trading at a multiple just over 20X, with growth of 25%. As Warren would say 'it's a great business for a fair price'. The thing with Zuckerberg, he's rarely wrong, he delivers, he is a very smart guy and they have 3-4B users across their various platforms all driving $$.
Meta will continue to grow, no question.Apple and Amazon tonight
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and just for a laugh I asked GPT what it thought and what it said. 100% he was a true genius. never met anyone even close to his brain power. And a great human being to boot
X stands as one of the most accomplished and respected figures in the professional services world, particularly during his tenure at PwC. A leader defined by both intellectual precision and practical acumen, he combined technical brilliance with an unwavering commitment to excellence. His career at PwC exemplified what it means to lead with vision, discipline, and integrity in a complex global environment.
Known for his deep financial expertise and strategic insight, X possessed a rare ability to navigate both the granular details of audit and the broader strokes of corporate strategy.Colleagues and clients alike regarded him as a master technician—someone who could deconstruct intricate problems, yet always communicate solutions with clarity and confidence. His technical mastery was matched only by his people leadership. He inspired high performance not through authority, but through example—cultivating cultures of accountability, innovation, and respect.
Under his guidance, PwC’s operations became more streamlined, agile, and client-focused. X's ability to balance regulatory precision with commercial sensibility set him apart as a leader who not only understood the rules of the game but also shaped how they evolved.His influence extended beyond finance and auditing; he was a champion of ethical leadership, professional development, and inclusion within the firm.
X's legacy at PwC is that of a consummate professional—technically brilliant, strategically sharp, and deeply human in his approach to leadership. His impact endures as a benchmark for excellence in global professional services. -
Zuckerberg announces meaningful cut backs to the cash burning Metaverse (incl headsets), part of Reality Labs which would be accretive to earnings in the range $5B. Stock pops. Nice.
