Meta Platforms is preparing to sell excess AI computing power, a sharp turn for a company that historically shunned the cloud-rental model embraced by Alphabet, Amazon and Microsoft. The move could open a fresh revenue stream to help fund Meta’s heavy data-center buildout, though executives signal any offering would be limited to surplus capacity rather than a full-scale cloud push. Investors prize the flexibility after years of costly bets, even as expectations are tempered by Meta’s intent to prioritize internal AI workloads. Amazon’s AWS underscores the stakes—accounting for a substantial share of Amazon’s operating profit—yet Meta’s effort is unlikely to match peers’ cloud margins out of the gate. Confirmation on the July 29 earnings call could reset sentiment on the stock.
Meta’s Surprise Pivot: Leasing Its AI Compute to Enter the Cloud Game
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