Meta Platforms stock surges 8% on cloud business plans

Investing.com -- Meta Platforms (NASDAQ: META) shares jumped 8% Wednesday after Bloomberg reported the company is building a cloud business to sell excess AI computing capacity.

Meta Platforms is developing plans for a cloud infrastructure business that will sell access to AI computing power and models, according to the report. The move sets up competition with industry leaders including Amazon Web Services, Microsoft Azure, and Google Cloud. The news weighed on hyperscaler stocks.

The company is forming a business to generate revenue from excess computing power sold to outside customers, according to people familiar with the matter cited by Bloomberg. Meta has been securing data centers and infrastructure to support its AI ambitions.

One potential plan includes selling access to various AI models hosted on Meta’s existing AI infrastructure, similar to AWS’s Bedrock offering. Meta would operate the data centers and chips powering the models, including its own Muse Spark models, and charge developers for access.

The company is also considering selling access to raw computing capacity, similar to neocloud businesses like CoreWeave. Development of these business lines is part of Meta Compute, an internal initiative to build and manage the company’s AI infrastructure efforts, according to a person familiar with the plans.

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