Meta Considers Cloud Business to Rent Out AI Computing Resources

A large logo installed in front of Meta Platforms' headquarters in Menlo Park, California. [Photo=AP Yonhap News]

Meta is exploring a cloud business to rent out its surplus artificial intelligence (AI) computing resources. The company has invested heavily in large-scale data centers and AI chips for the development of superintelligent AI, but is now considering selling some of these resources externally to reduce investment burdens.

On July 1, Bloomberg reported, citing multiple sources, that Meta is internally developing a cloud business concept called "Meta Compute."

The company is considering offering computing resources and access to AI models to external businesses and developers using its data centers and AI chip infrastructure.

Two business models are under consideration. One involves hosting Meta's AI models on its infrastructure, allowing external developers to access them via an API. This API would enable developers to integrate Meta's AI models into their own services, similar to offerings from Amazon Web Services (AWS), Microsoft Azure AI Foundry, and Google Cloud Vertex AI.

The other model would involve renting out the computing power necessary for AI operations, such as graphics processing units (GPUs). This approach is akin to the infrastructure rental services provided by so-called "neocloud" companies like CoreWeave and Nebulis, which offer GPU servers for AI training and inference to businesses.

Meta has been investing significantly in data centers and AI chips to achieve its goal of developing superintelligent AI. The company has indicated that its capital expenditures could reach as high as $145 billion this year, most of which is expected to be allocated to building AI infrastructure.

Mark Zuckerberg, Meta's CEO, mentioned the possibility of entering the cloud business during a shareholder meeting in May. He stated, "External companies are inquiring about the possibility of purchasing Meta's model APIs or computing resources," adding that if the infrastructure is deemed overbuilt, external sales could be an option.

Among major tech companies operating large AI data centers, Meta has yet to fully launch a cloud business. Currently, the cloud market is dominated by Amazon Web Services, Microsoft Azure, and Google Cloud. If Meta enters the cloud sector, it will compete not only with existing cloud providers but also with neocloud companies that rent out AI computing resources.

Following the news of Meta's cloud business exploration, market reactions were mixed. Meta's stock surged by 8.8%, while shares of AI resource rental companies CoreWeave and Nebulis fell by double digits.

Semiconductor stocks also experienced declines, with companies like Micron, Intel, SanDisk, Broadcom, and NVIDIA all seeing drops. The iShares Semiconductor ETF (SOXX), which tracks the Philadelphia Semiconductor Index, also fell.

* This article has been translated by AI.