Guangfa Securities: The current computing power of Meta may still be limited, and there is at least no idle computing power.

Market news indicates that the social media giant Meta may establish Meta Compute to sell model API services and unused GPU computing power, causing concerns in the market about Meta's capital expenditures and intensifying competition with Neocloud. In response to this news, Guosen Securities stated that Meta's plan to sell computing power is not new information. During the shareholder meeting in May, Meta's CEO mentioned that if the computing power built by Meta exceeds internal needs, they would consider selling excess computing power or launching API services. Guosen Securities pointed out that Meta's current computing power may still be limited. Reports suggest that Meta has requested employees to improve the efficiency of token usage. At least for now, Meta does not have unused computing power, and is working on increasing computing power through its own infrastructure development and external collaborations. "Meta values cost control, but may not necessarily reduce CAPEX. With high computing power leasing prices, Meta may confirm short to medium-term income and FCF through the commercialization of AI infrastructure, while building a lower cost architecture to cope with the increase in memory costs," further stated Guosen Securities.