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 roughly $125 billion to $145 billion this year, Meta aims to improve returns on idle GPU clusters after CEO Mark Zuckerberg told shareholders that offering cloud services was "definitely on the table."
- Investors pushed Meta shares up as much as 10% following the report, positioning the company to compete directly with cloud giants Amazon, Microsoft, Google, and CoreWeave in a $300 billion annual market.
- CoreWeave shares fell 13% as investors weighed the threat of a well-capitalized rival entering the compute-rental market, with analysts noting Meta's entry creates pricing pressure for specialized infrastructure providers.
- Led by infrastructure head Santosh Janardhan, Meta Superintelligence Labs leader Daniel Gross, and Meta President Dina Powell McCormick, the initiative mirrors SpaceX's recent strategy to monetize idle capacity and remains in development.
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Meta shares jump 10% after reports company is selling excess AI computing power
Meta shares jumped 10% Wednesday following a report the company is planning to sell excess computing power, allowing it to recover some of the billions of dollars it has sunk into AI.
As part of the new business, Meta would offer users access to its computing capacities and infrastructure for the development of artificial intelligence.
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…
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