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Meta AI Cloud: Meta shares climbed 8% on Wednesday. The jump followed news that Meta is building a new cloud business.
That business could help the company recoup some of the billions it has spent on artificial intelligence infrastructure.
Meta plans to sell its extra computing power to outside customers. CNBC's Jim Cramer confirmed the move. Bloomberg first broke the story.
The company hasn't decided on its exact approach yet. It's weighing whether to give customers access to AI models running on its servers. Alternatively, it could simply sell raw computing power.
Bloomberg reported both options remain on the table. Meta did not immediately respond to a request for comment.
The move comes amid an industry-wide scramble for computing capacity. That race began in 2022, when OpenAI launched ChatGPT and sparked the AI boom. Demand for computing power has outpaced supply ever since.
Meta itself is spending heavily on this front. The company told investors in April it plans to spend up to $145 billion this year.
That spending covers data centers and the graphics processing units needed to train AI models and run large-scale workloads.
A cloud business could ease investor concerns. It would let Meta generate revenue from computing capacity it isn't using.
That's a welcome shift for investors who have grown uneasy about the company's massive spending. But the move also puts Meta in new territory.
It would enter a fiercely competitive cloud market. Amazon, Microsoft, Google and CoreWeave already dominate that space.
The announcement rattled rival cloud stocks. Shares of CoreWeave sank 13%. Nebius Group fell 15%.
Mark Zuckerberg first hinted at a possible cloud push during Meta's third-quarter 2025 earnings call.
He raised the idea again in May at Meta's annual shareholder meeting. "It's definitely on the table," Zuckerberg told investors at the time.
He added that if Meta ends up with more AI infrastructure than it needs, selling that excess capacity becomes a real option.
Meta isn't the first tech giant to take this route. Elon Musk's SpaceX began selling its excess computing capacity earlier this year. The company has landed major deals in the process.
Anthropic agreed to pay $1.25 billion per month for capacity. Google agreed to pay $920 million per month.
Meta, meanwhile, is still working to establish itself in the AI race. Last year, the company spent $14 billion to bring on Alexandr Wang from Scale AI. Under Wang's leadership, Meta debuted its first model, Muse Spark, in April.
The company described it as a "powerful foundation" rather than a state-of-the-art offering.
Visual Disclaimer: This is an AI-generated illustrative portrait. It is used for creative representation and does not depict a real-time event. Created by AD News Live.
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