--- title: "Meta's stock price surged: AI infrastructure costs are only half of expectations" type: "News" locale: "en" url: "https://longbridge.com/en/news/292323181.md" description: "Meta's stock price surged mainly due to the disclosure of an internal memo revealing that its AI infrastructure costs are only half of what was expected. The actual construction cost per gigawatt of computing power is about $22 billion, far lower than Wall Street's expectation of $45 billion. The company plans to add 14 gigawatts of computing power between 2026 and 2027 and will begin mass production of self-developed AI chips in the fall to supplement GPU supply. This efficient vertically integrated AI factory model effectively addresses investors' concerns about the return on capital expenditures" datetime: "2026-07-10T12:47:59.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/292323181.md) - [en](https://longbridge.com/en/news/292323181.md) - [zh-HK](https://longbridge.com/zh-HK/news/292323181.md) --- # Meta's stock price surged: AI infrastructure costs are only half of expectations Meta Platforms' stock price has recently surged, although the market's attention has largely focused on its newly released AI models and paid developer programs. However, what truly drove the stock price increase was information about a cost breakthrough hidden in an internal memo. The internal memo indicates that Meta is building its AI infrastructure with efficiency far exceeding Wall Street's expectations. The company plans to add up to 14 gigawatts of computing capacity in total in 2026 and 2027, having already deployed 1 gigawatt in 2026, with an expected additional 5.5 gigawatts in the second half of the year. Even more exciting for the market is the significant breakthrough on the cost side. Previously, the market estimated that Meta's construction cost per gigawatt of computing capacity was about $45 billion. However, according to the data disclosed in the memo and Meta's projected $145 billion capital expenditure, the actual cost is close to $22 billion per gigawatt, which is only about half of Wall Street's expectations. Analysts point out that if the capacity data for 2026 in the memo is close to accurate, Meta may have achieved significant cost savings, bringing the unit capacity cost well below market expectations. Building AI computing capacity at a cost of less than $30 billion per gigawatt would yield significant positive economic benefits compared to similar businesses of other tech giants. Additionally, the memo reveals that Meta plans to begin mass production of its self-developed AI chips this fall to supplement GPU procurement and has signed multi-year supply agreements with Broadcom and TSMC. However, since the chips will not enter mass production until September, they are not the source of cost savings for 2026; the chip roadmap is more of a future benefit. Wall Street is beginning to realize that Meta is not blindly chasing its competitors but is building a highly efficient, vertically integrated AI factory. By reducing expected computing costs by nearly half and establishing its own chip supply chain, Meta effectively addresses investors' greatest concerns about the return on its massive capital expenditures ### Related Stocks - [META.US](https://longbridge.com/en/quote/META.US.md) - [METU.US](https://longbridge.com/en/quote/METU.US.md) - [METD.US](https://longbridge.com/en/quote/METD.US.md) - [FBL.US](https://longbridge.com/en/quote/FBL.US.md) - [METG.US](https://longbridge.com/en/quote/METG.US.md) - [METW.US](https://longbridge.com/en/quote/METW.US.md) - [FBY.US](https://longbridge.com/en/quote/FBY.US.md) - [FBYY.US](https://longbridge.com/en/quote/FBYY.US.md) - [MAGX.US](https://longbridge.com/en/quote/MAGX.US.md) - [AVGO.US](https://longbridge.com/en/quote/AVGO.US.md) - [TSM.US](https://longbridge.com/en/quote/TSM.US.md) ## Related News & Research - [Meta to start in-house AI chip production in September](https://longbridge.com/en/news/292391467.md) - [Meta AI image detector fails to identify some of its own cropped AI images, Reuters analysis finds](https://longbridge.com/en/news/292339206.md) - [Meta u-turns on AI feature amid privacy backlash](https://longbridge.com/en/news/292388524.md) - [Key facts: Erste Upgrades Meta; Alberta AI Center; CEO Questions Cloud](https://longbridge.com/en/news/292161195.md) - [Mark Zuckerberg Posted on Elon Musk's X for the First Time Since 2023 to Promote Meta's Muse AI—MKBHD Explains How to Opt Out](https://longbridge.com/en/news/292275185.md)