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Meta Pivots to Cloud, Stock Surges 10% on AI Compute Monetization Plan

Meta is reportedly building a cloud business to sell excess AI compute capacity and model access, directly challenging AWS, Azure, and Google Cloud. Shares spiked nearly 10% in Wednesday trading as the plan eases investor fears over the company’s massive AI capex.

OurAlpha

01 Jul 2026 — 4 min read

Meta's cloud computing push sends shares soaring nearly 10% in intraday trading.

Meta (META) is plotting a new cloud business to sell its surplus AI compute capacity and models to external customers, a move that could unlock a fresh revenue stream and soothe market jitters over its eye-popping AI infrastructure spending. Shares surged in Wednesday trading on the news.

As of 12:30 PM ET on July 1, Meta traded at $619.36, up 9.95% (+$56.07) from the prior close of $563.29.
Meta plans to launch a new cloud unit to sell excess AI compute, going head-to-head with Amazon AWS, Microsoft Azure, and Google Cloud.^[Ynetnews]
The business could take two forms: letting developers access AI models hosted in Meta’s data centers (similar to Amazon Bedrock), or selling raw compute capacity (the “new cloud” model used by CoreWeave).^[Reuters]
CEO Mark Zuckerberg told shareholders in May that selling excess compute or offering API services is “definitely on the table,” adding that outside companies inquire about it almost weekly.^{[Yahoo Finance UK]}
As of Q1, Meta had committed $182.9 billion to AI infrastructure over the coming years, including massive data center projects in Louisiana and Ohio.^[TechCrunch]
The news rippled across the sector: Amazon (AMZN) rose ~1.99%, Microsoft (MSFT) gained ~3.68%, while “new cloud” player CoreWeave (CRWV) tumbled ~13.06%.^{[Yahoo Finance UK]}

Meta (META) shares surged in Wednesday trading, hitting $619.36 as of 12:30 PM ET — a 9.95% gain (+$56.07) from the prior close of $563.29 — after touching an intraday high of $628.28. The catalyst: reports that the social media giant is building a cloud business to sell its excess AI compute and models to external customers, a move that could open a new revenue stream and ease concerns over its massive AI spending.^[^CNBC^]

Cloud Business: Two Models, Head-to-Head with the Giants

Bloomberg reports that Meta is drawing up plans to enter the cloud infrastructure market, selling AI compute and model access — a direct challenge to Amazon AWS, Microsoft Azure, and Google Cloud.^[^Ynetnews^] The initiative, dubbed “Meta Compute” internally, focuses on building and managing the company’s AI infrastructure. It is being led by infrastructure chief Santosh Janardhan, Meta’s super-intelligence lab’s Daniel Gross, and Meta President Dina Powell McCormick.^[^Reuters^]

Two main business models are under discussion. The first would let developers access AI models hosted on Meta’s infrastructure — akin to Amazon’s Bedrock service — with Meta operating the data centers and chips (including its Muse Spark model) and charging for access. The second would sell raw compute capacity, the model used by “new cloud” players like CoreWeave.^[^Reuters^] A Meta spokesperson declined to comment, noting the plans are still being finalized.^[^Ynetnews^]

Zuckerberg Telegraphed the Move; Investors Were Worried About Spend

The cloud push didn’t come out of nowhere. CEO Mark Zuckerberg told shareholders in May that selling excess compute or offering API-based AI services is “definitely on the table.” He said: “Almost every week, different companies come to us, either asking us to build an API service or asking if we have compute to sell them at a price higher than what we’re buying it for.” He added: “We haven’t done that yet because we think we have a use for the compute, but clearly, if we feel like we’ve overbuilt, this is an option we can choose — and it partly gives us the confidence to invest in building it.”^[^{Yahoo Finance UK}^]

Investors had been uneasy about Meta’s AI spending. As of Q1, the company had committed $182.9 billion to AI infrastructure over the coming years, including massive data center projects in Louisiana and Ohio. Zuckerberg has said the Ohio project will be “the size of Manhattan” and is expected to come online this year.^[^TechCrunch^] While Meta has rolled out multiple versions of its Llama AI model, it does not separately disclose revenue from Meta AI or Llama in its earnings; executives have mainly emphasized the value of AI for internal enterprise use.^[^TechCrunch^]

Market Cheers, but Stock Still Down on the Year

Wednesday’s rally is a welcome sign for Meta, but the stock is still down more than 23% over the past 12 months and roughly 14% year-to-date.^[^{Yahoo Finance UK}^] A new cloud revenue line could help offset Wall Street’s concerns and give Meta’s profits an additional boost.

The news also moved other cloud-related names. Amazon (AMZN) rose ~1.99% in intraday trading, and Microsoft (MSFT) gained ~3.68%. Meanwhile, “new cloud” player CoreWeave (CRWV) fell ~13.06%, as the market likely interpreted Meta’s entry as intensifying competition in the space.^[^{Yahoo Finance UK}^]

Industry Trend: Monetizing AI Compute Is the New Frontier

Meta is not alone in this play. Just weeks ago, SpaceX, through its affiliate xAI, announced a similar plan to sell the entire compute capacity of its Colossus 1 data center to Anthropic.^[^TechCrunch^] Some analysts argue this signals that the winner of the AI race may not be the company with the best model or service, but the one that owns the data centers — provided compute demand stays strong and data centers hold their value. Skeptics, however, warn that the AI infrastructure buildout is inflating a bubble, one heavily reliant on rapidly depreciating chips, and question whether AI companies can generate enough end-user revenue to justify the trillion-dollar investment.^[^TechCrunch^]