Meta’s plan to rent out surplus cloud computing capacity sends shares of CoreWeave and Nebius sharply lower on competition fears.
Meta Platforms will begin leasing excess cloud computing capacity to external customers, intensifying competition with AI infrastructure providers CoreWeave and Nebius. Shares of CoreWeave (CRWV) fell nearly 14% on July 1, while Nebius (NBIS) dropped 17% following the report. Meta, meanwhile, rose nearly 9% on the news.
CoreWeave and Nebius specialize in AI data centers and have secured large contracts with Meta to support its AI tool deployment. Meta’s aggressive spending on its own infrastructure has reduced reliance on third-party providers, raising concerns about future demand for their services.
The move signals Meta’s broader push into cloud services, directly challenging smaller players in the AI infrastructure space. Analysts warn the shift could limit growth opportunities for CoreWeave and Nebius as hyperscalers expand their offerings.