Deutsche Bank stated in a research report that Meta's AI compute expansion plans may not drive up capital expenditure, and that cloud business could unlock AI investment returns. Meta plans to increase its computing infrastructure capacity from 7GW in 2026 to 14GW in 2027, and aims to begin mass production of its in-house Iris chip as early as September 2026. Using CoreWeave as a benchmark, Deutsche Bank estimates each additional 1GW requires approximately USD 35 billion in investment, implying a potential USD 245 billion investment for the additional 7GW. Wall Street’s prior consensus forecast for Meta’s 2027 capital expenditures stood at roughly USD 160–165 billion, while Deutsche Bank’s prior forecast was around USD 185 billion. Deutsche Bank noted that off-balance-sheet financing and partner contributions could reduce Meta’s direct construction costs, and that renting out idle compute capacity could generate incremental revenue of USD 15–36 billion for Meta. The bank maintained its “Buy” rating on Meta with a price target of USD 810.