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Use for own use or sell to make money? Technology giants face AI computing power allocation problem
2 min read
Source: ithome.com
IT House reported on July 30 that as technology giants aggressively build computing power infrastructure to meet the needs brought about by the AI boom, some companies are facing a thorny question: Should they keep the computing power for their own use, or sell it to make money? IT House noticed that Meta CEO Mark Zuckerberg talked about this issue during the company’s second quarter earnings conference call this week. Although Meta is not currently in the business of selling computing power, the data center processing power used to run artificial intelligence, to customers, Zuckerberg said that related business is already planned. Zuckerberg said “the majority” of Meta’s computing power will be used to train the company’s AI models, drive AI agents, and support the development of its core business. "However, we also expect to develop a sizable business serving large customers." To meet the rapidly growing demand for artificial intelligence, technology giants are racing to expand computing infrastructure. Google and Meta both recently slightly raised their capital spending forecasts for this year, with Google also saying investments in 2027 could be even larger. In contrast, Microsoft took the rare step of keeping its previous capital expenditure forecast unchanged. The huge investment has begun to be reflected in the financial data. Google's free cash flow turned negative for the first time in history in the second quarter, while Meta's free cash flow plummeted 91% from the same period last year. Selling computing power can alleviate cash flow pressure to a certain extent, but it also means paying an opportunity cost. Executives from many technology companies have repeatedly emphasized that global computing power is still in short supply. These companies are vying to be at the forefront of the AI race, and even employees within the company sometimes have to compete for computing resources. Microsoft also faces this dilemma. Business Insider reporter Dan DeFrancesco described it earlier this week: "Should Microsoft seize immediate market demand to make money, or should it focus more on long-term strategic goals?" Microsoft Chief Financial Officer Amy Hood said in an earnings call on Wednesday