Meta to sell excess AI compute to competitors via new cloud business
By
Rachyl Jones
Summary
Meta is pivoting to sell excess computing capacity from its massive AI data center buildout to competitors, launching a cloud computing business. The move signals that Meta's own AI models aren't fully utilizing its infrastructure, but investors reacted positively (shares up 10%) to the prospect of recouping some of the $600 billion Meta has pledged to spend by 2028 on AI infrastructure.
Source
bskyMeta to sell excess AI compute to competitors via new cloud businesssemafor.comKey quotes
· 3 pulledMeta is building a cloud computing business and plans to sell excess compute to its competitors
The move is a signal that Meta doesn't have enough usage of its own AI models, even as it spent gobs of (often borrowed) money on building data centers
The company's shares jumped by more than 10% as investors cheered the promise that Meta might be able to recoup some of the $600 billion it's pledged to spend by 2028
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