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According to the article, this is a myth. > Myth 5: Meta’s Spending is a Waste Any rebuttal to the arguments he makes?

by camdat 4y ago

chowchowchow 4y ago
He doesn’t defend the metaverse spending. He argues it’s not that much comparably but a) that’s kinda subjective. Is 10 out of 40 billion a lot? and b) that’s no defense really.
- camdat 4y ago
  >The problem with this line of reasoning is that Meta’s capital expenditures are directly focused on both of the two main reasons for alarm: TikTok and ATT. That is because the answer to both challenges is more AI, and building up AI capacity requires a lot of capital investment. >In the long run, though, this investment should pay off. First, there are the benefits to better targeting and better recommendations I just described, which should restart revenue growth. Second, once these AI data centers are built out the cost to maintain and upgrade them should be significantly less than the initial cost of building them the first time. Third, this massive investment is one no other company can make, except for Google (and, not coincidentally, Google’s capital expenditures are set to rise as well).
  - chowchowchow 4y ago
    And? Neither of those quotes mentions metaverse spending.
    - camdat 4y ago
      RL spending (that 10B you're mentioning) includes this capital expenditure. Obviously the percentage of that 10B going to deployment is unknown, but given that it's the most expensive part (according to the author), I assume it's the majority.
- gumby 4y ago
  They might have overbet on VR, but they remember acutely that they "lost mobile" which was basically an existential threat for them. Through major* effort they clawed their way back to the top on mobile. I guess Z thinks that VR is the next phase and that they aren't going to make the same mistake again. He's certainly been interested since buying Oculus. Even if they don't sell a lot of headsets, they will probably have more experience than anyone else on what works and doesn't, and how that relates to the experiences they need to create. Of course this depends on VR actually mattering, which I doubt. Perhaps some of that will apply to AR, though when that goes mainstream is another big question. * Normally the adjective "heroic" would be appropriate to describe the level of effort, but somehow I can't use that word when talking about a company, much less one like FB.

According to the article, this is a myth. > Myth 5: Meta’s Spending is a Waste Any rebuttal to the arguments he makes?

by camdat 4y ago

According to the article, this is a myth. > Myth 5: Meta’s Spending is a Waste Any rebuttal to the arguments he makes?

He doesn’t defend the metaverse spending. He argues it’s not that much comparably but a) that’s kinda subjective. Is 10 out of 40 billion a lot? and b) that’s no defense really.

camdat 4y ago
>The problem with this line of reasoning is that Meta’s capital expenditures are directly focused on both of the two main reasons for alarm: TikTok and ATT. That is because the answer to both challenges is more AI, and building up AI capacity requires a lot of capital investment. >In the long run, though, this investment should pay off. First, there are the benefits to better targeting and better recommendations I just described, which should restart revenue growth. Second, once these AI data centers are built out the cost to maintain and upgrade them should be significantly less than the initial cost of building them the first time. Third, this massive investment is one no other company can make, except for Google (and, not coincidentally, Google’s capital expenditures are set to rise as well).
- chowchowchow 4y ago
  And? Neither of those quotes mentions metaverse spending.
  - camdat 4y ago
    RL spending (that 10B you're mentioning) includes this capital expenditure. Obviously the percentage of that 10B going to deployment is unknown, but given that it's the most expensive part (according to the author), I assume it's the majority.
gumby 4y ago
They might have overbet on VR, but they remember acutely that they "lost mobile" which was basically an existential threat for them. Through major* effort they clawed their way back to the top on mobile. I guess Z thinks that VR is the next phase and that they aren't going to make the same mistake again. He's certainly been interested since buying Oculus. Even if they don't sell a lot of headsets, they will probably have more experience than anyone else on what works and doesn't, and how that relates to the experiences they need to create. Of course this depends on VR actually mattering, which I doubt. Perhaps some of that will apply to AR, though when that goes mainstream is another big question. * Normally the adjective "heroic" would be appropriate to describe the level of effort, but somehow I can't use that word when talking about a company, much less one like FB.