Bloomberg reported Meta's next-year capex plans run counter to market fears of cuts, with the company still pursuing expensive new data centers and signing major compute deals with CoreWeave, Google, and Oracle. Sell-side analysts lifted FY27 Meta capex estimates to $220 billion against Street estimates of $160 billion, after Meta contracted over 5 GWW of data center capacity in H1 2026 alone. xAI's Grok 4.5 release demonstrated near-frontier capability at a lower cost per task, trained on tens of thousands of GB300s.
Meta's continued aggressive compute spending and xAI's cost-efficient model reinforce that compute remains a binding constraint, driving demand for GPUs and data center capacity.