Is Meta "slapping itself in the face"? Building new data centers!

META has left everyone confused this time. They announced plans to invest $10 billion in building their first data center in Canada, aiming to expand their global data center network.

However, they previously mentioned having excess computing power and even considered renting some of it out. The contrast is stark; if there's truly a surplus, there's no need to keep spending on new data centers.

So, one possibility is that the earlier adjustments were only for some short-term projects, and the rental plan was also a short-term strategy. They likely still believe long-term AI demand will be insufficient, hence the continued investment.

As the saying goes, it's best for the one who tied the bell to untie it. Now it's up to the market to interpret this. At least for today, the tech sector has shown some recovery.

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