Meta to Sell Excess Computing Power as Shares Jump 9% on Cloud Revenue Push
Updated
Updated · CNBC · Jul 2
Meta to Sell Excess Computing Power as Shares Jump 9% on Cloud Revenue Push
3 articles · Updated · CNBC · Jul 2
Summary
Meta plans to sell excess computing power to outside customers, opening a cloud-style revenue stream to monetize its vast AI and data-center buildout.
98% of Meta's revenue still comes from digital ads, and the move addresses investor pressure to justify spending after it lifted the top end of 2026 capital-expenditure guidance by $10 billion to $145 billion.
9% was the stock's Wednesday gain—its sharpest rally in more than five months—after four straight quarterly declines had erased nearly a quarter of Meta's value.
Analysts expect Meta to focus on AI-specific compute rather than directly challenge AWS, Azure and Google Cloud, though that could still pressure margins because cloud services are far less profitable than Meta's ad business.