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Meta shares rise 8% on report it’s building cloud business to sell excess compute
- Meta plans to build a cloud infrastructure business that will sell access to AI computing power and models, Bloomberg reported citing people familiar with the matter.
- The sources said the plans are still in development and Meta could change the strategy.
- Meta shares rose by as much as 8% in pre-market trading following the report.
Assessment
This may be a long-term plan, given that Meta itself is constrained when it comes to compute. However, it reduces the risk that the company could end up with excess compute capacity.