According to recent reports Meta Platforms is planning to set-up a separate cloud business. This unit would sell access to computing power and AI models in a move to help fund Meta’s AI ambitions and reduce reliance on advertising revenue.
Bloomberg reported the Facebook-owner could form the unit to sell outside customers excess computer power, rivalling “neocloud” businesses such as CoreWeave.
The potential business line will be part of Meta Compute, its offering that runs and manages AI infrastructure assets.
As part of the plans, Meta will look at selling access to AI models that are hosted on the company’s infrastructure. In such a scenario, sources claim Meta would run data centres and chips that power the models and charge developers for access.
This would set up direct competition with Amazon Web Services’ Bedrock offering, for example.
Meta unleashed Muse Spark, its first large language model under its so-called superintelligence push in April, which it positioned as the most powerful to date and designed to improve AI features across its social media apps.
It has committed a capex spend of $125 billion to $145 billion for 2026, earmarked for the buildout of additional AI infrastructure to support future capacity.
By setting up a cloud business, Bloomberg noted it could be one way of generating a return on its massive investment.
It could also give it a significant revenue stream away from advertising, which accounted for $55 billion of its total $56.3 billion revenue at the start of 2026.
Source: Mobile World Live
Image Credit: Meta Platforms
Source: Tahawul Tech