“Going forward, the construction cost of the data center will not be recorded in CapEx as the data center is constructed, we will contribute 20% of the remaining construction costs required, which is in line with our ownership stake, and those will be recorded as other investing cash flows.”

In context

“taining business. And our general view is that we want to build these out to reach many hundreds of millions or billions of people and that's the point at which we think that this is going to be just an extremely profitable business. Susan Li: Youssef, to your second question, so the JV that we announced with Blue Owl is sort of an example of finding a solution that enabled us to partner with external capital providers to codevelop data centers in a way that gives us long-term optionality in supporting our future capacity needs just given both the magnitude, but also uncertainty of what the capacity outlook in future years looks like. In terms of how that is recognized as CapEx, our prior CapEx reflected a portion of the data center build cost prior to the joint venture being established. Going forward, the construction cost of the data center will not be recorded in CapEx as the data center is constructed, we will contribute 20% of the remaining construction costs required, which is in line with our ownership stake, and those will be recorded as other investing cash flows. Operator: Your last question comes from the line of Ken Gawrelski with Wells Fargo. Kenneth Gawrelski: Just one for me, please. Mark, as you think about with the -- hopefully, a leading frontier model next year in hand, could you talk about where you think the value will accrue in this evolving ecosystem? Will it be with the platforms? Or do you think that this will be mostly -- the value will accrue to the scaled first-party applications. Mark Zuckerberg: I guess I'm not exactly sure what you mean by platform versus application in this context. But I mean I think that -- I mean, I think there's just a lot of value to create with AI overall. So I mean, clearly, you're seeing the people who are making the hardware. NVIDIA is doing an amazing job, right, I think, extremely well-deserved suc”