Meta building cloud business to sell excess AI capacity, Bloomberg News reports
The new business could sell hosted AI models or raw compute as Meta looks to turn billions in infrastructure spending into revenue.
- On Wednesday, Bloomberg reported Meta Platforms is organizing an internal initiative called "Meta Compute" to sell excess AI computing capacity and hosted models to outside customers.
- With capital expenditures reaching $125 billion to $145 billion this year, Meta aims to improve returns on idle GPU clusters after CEO Mark Zuckerberg told shareholders cloud services were "definitely on the table."
- Investors pushed Meta shares up 10% following the report, positioning the company to compete directly with cloud giants Amazon, Microsoft, Google, and CoreWeave in a market worth $300 billion annually.
- CoreWeave shares fell 13% as investors weighed the threat of a well-capitalized rival entering the compute-rental sector, with analysts citing potential pricing pressure for infrastructure providers.
- Led by Santosh Janardhan, Daniel Gross, and Meta President Dina Powell McCormick, the initiative mirrors SpaceX's recent strategy to monetize idle capacity, though Meta's plans remain in development and could change.
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27 Articles
Meta cashes in on its excesses
It turns out that while companies are trying to be the biggest and the fastest in AI, selling the leftovers is where a lot of the money is.Meta is building a cloud computing business and plans to sell excess compute to its competitors, Bloomberg reported Wednesday. The move is a signal that Meta doesn’t have enough usage of its own AI models, even as it spent gobs of (often borrowed) money on building data centers. The company’s shares jumped by…
Meta plans to create a cloud infrastructure business that will sell access to its computational power and artificial intelligence (AI) models, establishing a new competition vector with industry leaders such as AWS, Amazon, Microsoft Azure and Google Cloud. The company, which has rushed to ensure expensive data centers and other infrastructures to boost its ambitions in AI, is creating a company to generate revenue with the excess of computation…
Meta Is Building a Cloud Business to Sell Excess AI Compute
Meta Platforms Inc. is developing plans for a cloud infrastructure business that will sell access to AI computing power and models, setting up a new vector of competition with industry leaders like Amazon Web Services, Microsoft Azure and Google Cloud.
Meta building cloud business to sell excess AI computing capacity
Meta Platforms Inc. plans to develop a cloud infrastructure business that would sell access to its massive AI computing power and models to outside customers. This sets up a new front of competition with industry heavyweights Amazon Web...
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