I=5
Meta will enter cloud computing if it overspends on data centers, said no current plans for stock splits and Reality Labs losses will start declining next year
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Zuckerberg reiterated that renting out data centers remains an option if they overbuilt them (min 56:19).
“It’s definitely on the table,” Zuckerberg said on Wednesday at Meta’s annual shareholder meeting. “Obviously if we get to a point where we feel that we have overbuilt, then that is an option that we have, and that is partially what gives us confidence in investing in building this out.”
“Almost every week there are different companies that come to us from outside asking us to both stand up an API service or asking if we have compute that they could buy from us at some premium to what we’ve bought it at.”
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He said Reality Labs losses will start declining from 2027 due to maturity in supply chains and operational efficiency (min 50:48).
“As Rody shared, we expect that our investment levels in Reality Labs this year will result in operating losses that are similar to 2025. Beyond 2026, we expect we will gradually reduce Reality Labs losses as we benefit from more mature supply chains, from scaling wearables and VR, and generate higher margin revenue lines, and also continue to operate more efficiently. This remains an important investment, but we’re focused on ensuring that we’re improving the investment profile from where it is today.”
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CFO Susan Li said they currently don’t have plans for stock split (min 53:05).