Meta Plans to Enter Cloud Market, Competing with Amazon, Google, and Microsoft

Meta is preparing to launch a new business division that will sell cloud services to other companies, including access to computing power and AI models, according to a Bloomberg report. This move would position Meta as a direct competitor to established cloud giants Amazon, Microsoft, and Google, which currently dominate the market alongside smaller competitors.

In 2025, Meta invested approximately $70 billion in AI infrastructure, with projected spending reaching up to $145 billion this year. These massive investments were part of the backdrop to the company's May layoffs, which cut about 10% of its workforce. Renting out some of its excess computing capacity could help Meta generate revenue to offset these substantial AI-related expenses.

The new cloud service will leverage Meta's surplus computing power that is not needed for its internal operations. One option under consideration is providing access to AI models hosted on Meta's infrastructure, similar to Amazon's cloud division model. Meta would operate the data centers and chips running these models, including the Muse Spark model, charging developers for access. The company is also exploring selling access to computing power alone.

This initiative is part of Meta Compute, an internal project focused on building and managing the company's AI infrastructure. The project is led by Meta's head of infrastructure Santosh Janardhan, AI labs executive Daniel Gross (former CEO of Ilia Sotckber's SSI), and Meta president Dina Powell McCormick. Meta has not responded to the report.

Summary: Meta is planning to offer cloud computing and AI model services to external customers, entering direct competition with Amazon, Google, and Microsoft, leveraging its extensive AI infrastructure investments.

Points: - Meta plans a new division to sell cloud and AI services to businesses. - The move challenges Amazon, Microsoft, and Google in the cloud market. - Meta invested $70 billion in AI infrastructure in 2025, expecting $145 billion in 2026. - Renting excess computing power aims to offset Meta's heavy AI spending. - Services may include access to AI models like Muse Spark and raw computing power. - The initiative is led by Santosh Janardhan, Daniel Gross, and Dina Powell McCormick.

Topic: tech

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