Meta Platforms shares rise after reports it will monetize excess AI infrastructure through a new cloud service.
Meta Platforms (META) shares climbed over 6% in premarket trading Wednesday following reports the company is developing a cloud business to sell excess artificial intelligence compute capacity. The move aims to capitalize on underutilized AI infrastructure amid growing demand for cloud services.
Amazon (AMZN), the leading cloud computing provider, saw its shares turn negative in early trading after the news. Meta’s expansion into cloud services could intensify competition in the sector, which has seen slowing growth in recent quarters.
The report did not specify a timeline for the launch or potential revenue impact, but analysts suggest the initiative could diversify Meta’s revenue streams beyond advertising.