Meta is reportedly planning to rent out its internal AI compute capacity to external developers, offering both hosted access to its AI models and raw GPU compute—positioning itself to compete directly with AWS, Azure, and other cloud providers.
Meta is building a cloud business to sell excess AI computing capacity, according to Bloomberg reporting. The company is weighing two service models: selling developers access to AI models hosted on its own infrastructure, including its closed-weight Llama models, in an arrangement similar to Amazon Web Services' Bedrock; or selling raw computing capacity in the same way neocloud providers such as CoreWeave do.
The initiative, reportedly dubbed Meta Compute, is led by head of infrastructure Santosh Janardhan, Meta Superintelligence Labs leader Daniel Gross, and president Dina Powell McCormick. Either path would put Meta in direct competition with AWS, Google Cloud, and Microsoft Azure.
Meta has been one of the neocloud sector's most important customers. The company expanded its cloud computing agreement with CoreWeave to $21 billion in April and has signed contracts worth up to $27 billion with Nebius—roughly $48 billion committed to renting other companies' GPUs because its own buildout couldn't keep pace with demand. The market repriced that relationship within hours of the Bloomberg report. Meta shares rose more than 10%, the stock's biggest single-day gain in over five months. CoreWeave fell 10.8%, and Nebius dropped 12.4%.
"The impact of adding Meta's capacity to the market is more likely to be on neoclouds than the big hyperscalers," said Gil Luria, managing director at D.A. Davidson. "Those companies like CoreWeave and Nebius rely on Meta for their growth, and Meta may not need them anymore."
The report was foreshadowed at Meta's shareholder meeting in May, when CEO Mark Zuckerberg said entering cloud computing was "definitely on the table," adding that companies were approaching Meta "almost every week" to buy access to its AI models or spare computing power.
Meta raised its full-year 2026 capital expenditure forecast to between $125 billion and $145 billion in April, citing higher component pricing and competition for land, power, and construction labor. The same week, Zuckerberg told employees that roughly 8,000 planned layoffs were a direct consequence of the company's infrastructure budget.
That budget funds a heterogeneous infrastructure fleet. Meta signed a 6 GW, $100 billion agreement with AMD in February, holds GPU deals with AMD and Nvidia worth roughly $110 billion combined, has announced four generations of its MTIA inference silicon, and struck a multi-billion-dollar Graviton deal with Amazon to cover general-purpose CPU shortfalls. Its Prometheus and Hyperion campuses are designed to scale to 1 GW and up to 5 GW, respectively.
Capacity at that scale arrives in large, indivisible increments timed to demand projections, which explains how a company that was rationed on Gemini access by Google and paid neoclouds tens of billions for GPU time can simultaneously find itself with surplus compute worth selling.
A similar dynamic has emerged at SpaceX. After deploying infrastructure for xAI, the company leased the entire capacity of the Colossus 1 data center in Memphis—more than 300 MW—to Anthropic for around $1.25 billion per month through May 2029, and subsequently agreed to rent capacity to Google for roughly $920 million per month. Bloomberg Intelligence estimates these arrangements could generate more than $50 billion by 2028.