Meta Platforms is building a cloud business to sell excess artificial intelligence computing capacity, according to a Bloomberg News report. The plans are still in development and the strategy could change.
The reported effort comes as major technology companies seek returns on large AI infrastructure investments amid investor concerns about overspending.
Meta shares rose more than 10% following the report. Shares of neocloud companies CoreWeave and Nebius fell 10.8% and 12.4%, respectively, amid concerns that Meta could reduce spending on their services and become a competitor.
The planned cloud service would reportedly allow developers to access AI models hosted on Meta’s infrastructure, including Muse Spark, and pay for the computing power needed to run them.
The model would be similar to Amazon Web Services’ Bedrock, which allows developers to access AI models from multiple companies.
Meta is also reportedly considering selling raw AI computing capacity, similar to neocloud providers.
Competing more directly with cloud providers such as Amazon, Microsoft, and Alphabet could help Meta tap demand for AI services from businesses while reducing its reliance on advertising.
However, the move could also increase scrutiny of Meta’s broader AI strategy as it works to catch up with leading AI labs.
Meta declined to comment, and Reuters said it could not independently verify the Bloomberg report.
At Meta’s shareholder meeting in May, CEO Mark Zuckerberg said entering cloud computing was “definitely on the table” and noted that companies were approaching Meta frequently about buying access to its AI models or spare computing power.
Meta is projected to spend as much as $145 billion on AI infrastructure this year, representing a significant share of Big Tech’s more than $700 billion expected outlay on the technology.
