1. Jul 2026
Description
(AWP Alliance News) - Shares of Meta Platforms Inc jumped on Wall Street Wednesday after a report said the social media giant is preparing to launch a cloud computing business that would sell AI computing power to outside customers.
The report, published by Bloomberg, said Meta is developing plans to compete directly with Amazon.com Inc's Amazon Web Services, Microsoft Corp's Azure and Alphabet Inc's Google Cloud by monetizing the excess computing capacity it has built up while racing to develop artificial intelligence.
Shares in Meta, which owns Facebook and Instagram, soared 10% to USD621.68 each in New York on Wednesday.
The company would also sell its own internally designed AI models to business customers for their own uses - a major emerging market for the cloud computing giants.
Meta has poured hundreds of billions of dollars into data centres and AI chips as it pursues what Chief Executive Mark Zuckerberg has called "superintelligence," spending that has fuelled investor concerns about how the company will generate returns.
The company, which has struck major computing deals with CoreWeave, Google and Oracle Corp, had seen its share price lose ground in recent months due to the AI overspending concerns.
Zuckerberg has previously signalled openness to selling excess computing capacity or launching a service that would charge business customers for AI usage measured in tokens.
"It's definitely on the table," Zuckerberg told shareholders on an earnings call in May.
source: AFP
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