Meta building cloud business to sell excess AI capacity, Bloomberg News reports
The plan could create a new revenue stream as Meta seeks returns on about $145 billion in AI infrastructure spending, Bloomberg reported.
- On Wednesday, Meta Platforms announced plans to launch an internal initiative dubbed 'Meta Compute' to sell excess AI computing capacity and models to outside customers, according to Bloomberg.
- The move follows Meta's $125 billion to $145 billion capital expenditure forecast for 2026; CEO Mark Zuckerberg told shareholders in May that launching a cloud service was "definitely on the table" if the company overbuilt capacity.
- Shares of Meta surged nearly 10% on Wednesday following the news, while specialized 'neocloud' providers CoreWeave and Nebius saw their stock prices fall sharply amid investor concerns over increased competition.
- Entering the cloud market positions Meta to compete directly with Amazon Web Services , Microsoft Azure, and Google Cloud, though analysts cautioned that companies may hesitate to host sensitive workloads on a competitor's platform.
- The initiative seeks to diversify Meta's business beyond digital advertising, which generated more than 97% of revenue last year, following the model SpaceX established by renting idle data center capacity to Anthropic and Google.
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