Meta Platforms Inc. (META, Financials) is reportedly building a cloud business to sell excess artificial intelligence computing capacity, a move that could help the company generate returns from its heavy AI spending.
The plan is still in development and could change, according to the report. Meta declined to comment.
The proposed service would allow developers to access AI models hosted on Meta's infrastructure and pay for the computing power needed to run them. Meta is also considering selling raw AI computing capacity, similar to services offered by neocloud providers.
Meta shares rose more than 10% after the report, easing pressure on a stock that had underperformed the S&P 500 this year.
For investors, the strategy could open a new revenue stream beyond advertising. It may also help Meta offset the cost of its AI infrastructure buildout, which is expected to reach as much as $145 billion this year.
The risk is execution. Meta would be entering a market led by Amazon, Microsoft and Alphabet, while also creating pressure for smaller cloud providers that rely on its spending.