Key facts
- Meta is reportedly developing a cloud infrastructure business to sell AI compute power and models.
- This move would place Meta in direct competition with Amazon Web Services, Google Cloud, and Microsoft Azure.
- SpaceX recently announced similar plans to monetize its data center capacity.
- Meta has committed to spending $182.9 billion on AI infrastructure.
- The company is considering selling access to its 'raw' compute capacity and AI models, including Muse Spark.
Meta is reportedly planning to launch a cloud infrastructure business, aiming to monetize its substantial investments in AI compute power and models. This strategic shift, detailed in a Bloomberg report, would position the social media giant as a competitor to established cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure.
The move mirrors recent announcements from SpaceX, which is also exploring ways to generate revenue from its data center capacity. Meta's decision comes amid significant spending on AI infrastructure, with the company having committed $182.9 billion in the coming years. This includes large-scale projects in Louisiana and Ohio, with the latter expected to become operational this year.
While Meta has heavily invested in AI, its direct revenue from AI models like Llama and Meta AI is not broken out in earnings reports, suggesting a primary focus on internal use. To recoup its colossal expenditures, Meta may adopt a model similar to CoreWeave, offering access to raw compute capacity. Additionally, the company is reportedly considering selling access to its hosted AI models, following the lead of AWS.
The new business line is expected to be part of an initiative called Meta Compute, spearheaded by infrastructure head Santosh Janardhan, Meta Superintelligence Labs leader Daniel Gross, and president Dina Powell McCormick. This aligns with CEO Mark Zuckerberg's earlier statements that a cloud computing business is under consideration as a means to achieve a return on investment in its pursuit of AI 'superintelligence'.