Explore the latest developments concerning Meta stock soars.
Meta stock soars as Zuck explores cloud business
Meta shares soared nearly 9% Wednesday on a report that the company is wading into the business of selling cloud computing services and access to AI models.
Why it matters: The booming AI economy has triggered insatiable demand for data processing power, enriching the likes of Amazon, Google and Microsoft.
Zoom in: The Facebook and Instagram owner is forming a business to capitalize on the excess computing power it's accumulated via huge investments in data centers and AI infrastructure, Bloomberg reports.
The plan could include selling access to AI models, similar to how Amazon Web Services provides access via its Bedrock offering.
VEVOR 750W 950W Airless Paint Sprayer 3000PSI High Efficiency Electric Airless Sprayer Handheld Paint Sprayers for Home Interior
Meta Compute: Everyone Wants To Be A Neocloud
With Bloomberg headlines suggesting Meta could become a Neocloud, the market’s reaction was immediate: aggressive sell-off of Neoclouds like Coreweave & Nebius, and debates of “overcapacity” coming back. Let’s set the record straight – we believe that both takes are erroneous and that Meta’s datacenter & compute procurement will accelerate, not slow down. Capex in 2027 will be shockingly high. In just the first six months of the year, Meta has contracted over 5GW of capacity across Cloud & Colo, and that doesn’t even include all their accelerating self-build activity. Everything is computer and everything is a neocloud.
Meta’s capacity under construction just keeps accelerating. We show below Meta’s two largest campuses – these two pictures represent 2.5GW of capacity under construction! By the way, if you believed the laughable headlines that “half of US datacenters and delayed and only 5GW are under construction”, we show you here that just two datacenters are half of this. Read our piece “Stop Saying Half of US Datacenters Are Delayed” for more on why these headlines are completely off.
For more detailed information, explore updates concerning Meta stock soars.
0 Comments