Meta shares jump 6% on report of planned cloud computing push
New York: Shares of Meta Platforms climbed more than 6% on Wall Street Wednesday following a report that the company is preparing to launch a cloud computing business.
The report, published by Bloomberg, said the social media giant is developing plans to sell AI computing power to outside customers, monetizing excess capacity built up during its push into artificial intelligence.
The move would put Meta in direct competition with Amazon Web Services, Microsoft Azure, and Google Cloud, the dominant players in the cloud infrastructure market.
Meta has invested heavily in data centers and custom chips to train and run its AI models, including those powering its Llama family. Selling unused compute capacity could help offset those costs and open a new revenue stream beyond advertising.
