Monologue: Meta Admits It Bought Too Many GPUs
7/3/20266 min
In this week's Better Offline monologue, Ed Zitron runs you through Meta’s plans to sell its AI compute, and how this is an admission to the grim fact that there isn’t really a reason for anyone to be building all these AI data centers.
Ed Zitron on CNBC: Generative AI's Business Model Does Not Work, And Tech Is Out Of Hypergrowth Ideas
https://www.reddit.com/r/BetterOffline/comments/1ulm3a6/ed_zitron_on_cnbc_generative_ais_business_model/
Bloomberg - Meta Is Planning a Cloud Business to Sell AI Computing Power
https://www.bloomberg.com/news/articles/2026-07-01/meta-is-building-a-cloud-business-to-sell-excess-ai-compute
The Information - Nvidia Says It Will Take a Cut of Some Customers’ Cloud Revenues
https://www.theinformation.com/articles/nvidia-says-will-take-cut-customers-cloud-revenues?rc=kz8jh3
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Clips
Transcript preview
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Ed Zitron· Host0:40
I'm Ed Zitron, and this is your Better Offline monologue for the week.
Speaker 10:44
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Ed Zitron· Host0:50
Earlier this week, Bloomberg reported, and I quote that, "Meta is developing plans for a cloud infrastructure business that will sell access to its AI computing power and models." A few weeks after CEO Mark Zuckerberg said at its annual shareholders meeting that he thought that Meta had a use for its compute, but it could sell it if it didn't. I genuinely love that he said that. It's like, "Eh, I think I spent $100 billion for a good reason. Don't know yet, though." And there's no other sensible way, at least, to r- interpret this news other than that Meta is admitting that it overbuilt its GPU capacity. After five different reorganizations of its AI team, a $14 billion