Meta’s stock surged over 5% after unveiling plans to monetize AI infrastructure and undercut rivals on model pricing.
Meta (META) shares rose more than 5% Friday, flipping to positive for the year as the company outlined new revenue streams to offset AI spending. The stock had been down year-to-date amid concerns over rising capital expenditures and uncertain returns on AI investments.
The company announced plans to rent AI computing power to third parties, potentially competing with Amazon’s AWS. Meta also revealed its 33rd data center, in Canada, and launched the Muse Spark 1.1 AI model with pricing significantly below competitors like Anthropic and OpenAI.
AI firms have cited computing capacity constraints as a key challenge, positioning Meta to capture demand in the cloud market. The moves could diversify revenue beyond advertising.