Meta aims to monetize its $130 billion infrastructure buildout by selling AI compute, challenging AWS, Azure, and Google Cloud.
Meta Platforms is developing a cloud business to sell AI compute, transforming its $130 billion capital expenditure into a revenue stream. The move targets AWS, Azure, and Google Cloud, which dominate enterprise AI infrastructure with over $1 trillion in combined backlogs.
The company’s Q1 capex surged to $18.997 billion, up nearly 50% year over year, driven by data center and GPU investments. Meta’s 2026 capex guidance now ranges from $125 billion to $145 billion, reflecting higher costs for AI infrastructure.
Shares rose 7.56% on July 1 as investors weighed Meta’s potential to disrupt the cloud market, though analysts remain skeptical about its immediate competitiveness.