Meta Platforms unveils Meta Compute to sell excess AI capacity, signaling entry into the cloud services market amid rising capex.
Meta Platforms shares rose 9% to $612.91 on July 1 after reports the company plans to launch Meta Compute, a cloud business leveraging excess AI capacity. The move positions Meta against cloud leaders Amazon, Microsoft, and Alphabet, marking a strategic shift beyond social media.
Capital expenditures surged 84% year over year in 2025 to $72.2 billion, with projections between $125 billion and $145 billion for this year. The spending reflects CEO Mark Zuckerberg’s bullish AI outlook but has raised concerns about returns, as shares remain 26% below last August’s peak.
Shares dipped 5% on July 2, reflecting investor caution over the company’s transition into a capital-intensive business model and its ability to monetize AI investments effectively.