META stock rises after announcing plans to lease surplus computing power, entering the cloud services market.
Meta Platforms (NASDAQ: META) saw its shares surge 9% following the announcement of a new cloud computing business. The company will lease excess computing capacity to customers, aligning with earlier remarks from CEO Mark Zuckerberg about monetizing overbuilt infrastructure.
The move positions Meta to compete with established cloud providers like Amazon and Microsoft. The company is still evaluating whether to offer direct access to computing power or include its proprietary AI models, which are currently used internally for content recommendations and ad targeting.
Meta recently introduced Muse Image, an image generation model developed by its Superintelligence Lab, which will support advertiser tools and be available to consumers on a limited basis.