Meta’s AI infrastructure costs at $22 billion per gigawatt undercut prior estimates, boosting its cloud ambitions against Amazon and CoreWeave.
Meta Platforms shares jumped 6% to $670 after reports revealed its AI build costs at $22 billion per gigawatt, nearly half the $45 billion previously estimated. The efficiency gain strengthens its push into cloud computing, challenging Amazon and CoreWeave.
Bank of America reiterated a Buy rating on Meta, raising its price target to $835. The company’s custom Iris chip, set for production this fall, is expected to drive long-term savings but won’t impact costs until 2027. Meanwhile, Amazon and CoreWeave shares showed minimal movement.
The rally follows a 15% gain in Meta stock over the past week, fueled by investor reassessment of its AI infrastructure strategy. A pending EU fine of over $12 billion for addictive design violations remains a potential overhang, though markets appear to be discounting the risk.