Meta Platforms shares jumped nearly 9 percent after a report that the social media giant is preparing to sell cloud computing and AI model access, a move…
Meta Platforms shares jumped nearly 9 percent after a report that the social media giant is preparing to sell cloud computing and AI model access, a move that would put it in direct competition with Amazon, Google and Microsoft.
At a Glance
- Meta shares surged almost 9 percent on the cloud computing report
- Bloomberg reports Meta could sell access to its own Muse Spark AI models and excess raw computing power
- Bernstein estimates Meta has already amassed 20 gigawatts of global data center capacity
- Neocloud rivals CoreWeave and Nebius fell 14 percent and 17 percent respectively
- CEO Mark Zuckerberg told investors in May that selling compute was already under discussion internally
Why Meta Wants a Piece of the Cloud Business
Meta has poured enormous sums into data centers and AI infrastructure over the past few years, and the company now appears to be looking for ways to squeeze revenue out of that buildout rather than let capacity sit idle. According to Bloomberg, the plan involves forming a new business unit that would run the chips and data centers powering AI models, then charge outside developers to tap into that access, an approach similar to how Amazon Web Services sells model access through its Bedrock platform. Meta would also weigh selling unused raw computing power to outside customers who need it.
Bernstein analyst Madison Rezaei noted that Meta's infrastructure footprint already rivals the traditional cloud providers. She pegs the company's current global capacity at 20 gigawatts, with another 14 gigawatts expected to come online in the next few years. Meta declined to comment on the report, though Zuckerberg had already floated the idea publicly. He told investors in May that selling compute was
