Meta partners with BlackRock: Here's what you need to know

Summary

CNBC's Julia Boorstin reports on Meta's $14 billion data center partnership with BlackRock, designed to share AI infrastructure costs. The deal allows Meta to lease compute capacity without bearing the majority of debt, addressing concerns about soaring capex. The report also highlights the potential for Meta to launch an AI cloud business as a new revenue stream, while the stock has been volatile around $600.

• Meta and BlackRock announce a $14B data center in El Paso, Texas, with BlackRock financing $12.5B of the debt.
• Meta will lease the entire campus, retaining 20% ownership and minimizing upfront capex.
• The structure aims to ease investor anxiety over Meta's rising AI spend, which could reach $247B in capex next year per Wells Fargo.
• Mark Zuckerberg has indicated that excess compute capacity could be monetized through an AI cloud business.
• Reports suggest Meta may close a $10 billion compute deal with Anthropic, further validating the cloud opportunity.
• META shares have been choppy around $600, down 12% since last earnings.