Live race
Payoff branch
Failure branch
Both loops run; the branch decision is open.
Meta AI capex: two coupled loops, one branch decision
Capex feeds both a revenue loop and a cost loop; the race between them decides the payoff or the failure branch.
AI capex
feeds both loops
AI compute
data centers + silicon
ad gains fund next capex
market re-rates on patience
Ad engine
targeting, creative, recs
Ad revenue grows
impressions + price/ad
Dep + opex wall
depreciation + infra opex
Margin compresses
opex drag on op margin
The race
efficiency vs the wall
Payoff branch
operating income grows
Failure branch
FCF near zero, payoff slips