Meta shares soar on report it plans cloud business to sell AI computing power
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The news: Meta Platforms shares as much as 11.53% to USD628.28 each after Bloomberg reported the tech giant is developing plans for a cloud business selling access to AI computing power and models, competing with Amazon Web Services, Microsoft Azure and Google Cloud.
Citing people familiar with the matter who were not named, the news outlet reported one option would sell access to AI models hosted on Meta’s infrastructure, including its Muse Spark models, similar to AWS’s Bedrock offering.
Meta is also weighing selling raw computing capacity, similar to neocloud businesses such as CoreWeave, according to the sources.
The effort sits under Meta Compute, led by infrastructure chief Santosh Janardhan, Meta Superintelligence Labs’ Daniel Gross and Meta president Dina Powell McCormick, the report said, adding the strategy could still change.
Meta declined to comment.
The numbers: Meta shares were trading 9.75% higher in early afternoon trading in New York. Shares in pure-play neocloud providers CoreWeave and Nebius Group were both over 13% lower.
The context: Meta’s push into AI computing power reflects mounting pressure across the industry to justify massive infrastructure spending, with rivals like SpaceX’s xAI already renting out spare capacity to customers including Anthropic and Google.
At Meta’s May shareholder meeting, CEO Mark Zuckerberg said a cloud business was “definitely on the table,” adding that if Meta felt it had overbuilt AI infrastructure, “that is an option that we have.”
The source: Bloomberg
