Quick overview

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Meta plans for a cloud infrastructure company that will sell access to AI computing power and models in order to compete with market leaders like Amazon Web Services, Microsoft Azure, and Google Cloud.

 

Meta, which has been racing to acquire pricey data centers and other infrastructure to support its own artificial intelligence aspirations, is starting a company to make money from excess computing power sold to outside clients. Selling access to different AI models hosted on Meta’s current AI infrastructure is one possible strategy, akin to AWS’s Bedrock offering, according to the people. The models, including their own Muse Spark models, would be powered by data centers and chips that Meta would manage and charge developers to access.

Like other so-called neocloud companies like CoreWeave Inc., the company is also thinking about selling access to “raw” computing capacity. ”

They said.”. According to a person familiar with the plans, Meta Compute, an internal initiative to develop and oversee the company’s AI infrastructure efforts, includes the development of these new business lines. Dina Powell McCormick, the president of Meta, Daniel Gross, a leader in the Meta Superintelligence Labs AI division, and Santosh Janardhan, the company’s head of infrastructure, are in charge of Meta Compute.

A representative for Meta declined to comment. Since the company’s plans are still being developed, the strategy might change. At 10:04 a.m., Meta’s stock increased by 9.3 percent to $615.55. The m. The largest intraday gain since April occurred in New York on Wednesday. CoreWeave experienced a 14% decline. The New York-based Dutch AI data center company Nebius Group NV saw a 17% decline.