Meta's $135bn AI Paradox: Outsourcing Cloud While Planning Massive Layoffs

• Meta is investing heavily in AI, with capital expenditure potentially reaching $135 billion by 2026, yet relies on external cloud providers.
• The company signed a deal worth up to $27 billion over five years with Nebius Group for AI infrastructure capacity.
• This partnership includes $12 billion in dedicated capacity and an option for $15 billion more, building on a prior $3 billion agreement.
• Nebius Group, a "neocloud" provider, saw its shares surge after the Meta deal, following a $2 billion investment from Nvidia.
• Despite massive AI investments, Meta is reportedly considering laying off 20% or more of its workforce to offset rising costs.