$Meta Platforms(META.US) +10% on a report from Bloomberg outlining plans to launch a cloud-infrastructure business to sell excess AI compute capacity.
The new business would increase competition between Meta and other technology conglomerates that have been spending big on AI development, including Amazon Web Services, Microsoft Azure and Google Cloud. Meta, like many of its competitors, is spending more and more on AI development. In its 1Q earnings report in April, Meta increased its projected 2026 capital spending to a range of $125B to $145B, up $10 billion. It cited "expectations for higher component pricing" and "additional data center costs."One potential plan includes selling access to various AI models that are hosted on Meta’s existing AI infrastructure, an approach similar to AWS’s Bedrock offering, the people said. Meta would run the data centers and chips that power the models, including its own Muse Spark models, and charge developers to access them. META is also considering selling access to “raw” computing capacity, akin to other so-called neocloud businesses like CoreWeave Inc. Development of these new business lines is part of Meta Compute, an internal initiative to build and manage the company’s AI infrastructure efforts. Meta has made developing AI “superintelligence” a top priority, and has committed hundreds of billions of dollars to data centers and other AI infrastructure. That investment has left investors anxious about Meta’s plans to earn a return on that spending, which includes major computing deals with CoreWeave, Google and Oracle Corp., among others. A cloud business offers one way to return some of that investment. AWS, Azure and Google Cloud have spent decades building platforms that rent access to computing power, storage and software over the internet — businesses that now command tens of billions of dollars per quarter in revenue.The copyright of this article belongs to the original author/organization.
The views expressed herein are solely those of the author and do not reflect the stance of the platform. The content is intended for investment reference purposes only and shall not be considered as investment advice. Please contact us if you have any questions or suggestions regarding the content services provided by the platform.
Post your comment
No Comments