Meta Adjusts AI Server Accounting to Increase Profitability

Reported about 5 hours ago

Meta Platforms Inc. has implemented a change in its accounting practices regarding the depreciation of its AI servers, extending their useful life from four to five and a half years. This adjustment, disclosed in its recent earnings report, is expected to decrease depreciation expenses by $2.9 billion in 2025, significantly boosting the company's profits amid increased capital spending on AI infrastructure. This trend of altering depreciation schedules is also being seen among other tech giants like Microsoft and Oracle, as firms seek to manage the financial implications of rapid technological advancements.

Source: YAHOO

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