Meta Shares Rise Nearly 10 Percent After Report on Potential Sales of Excess Computing Power

Meta shares jumped nearly 10 percent on Wednesday after a report that the company plans to sell excess computing power, New York Post reported. The Menlo Park, California-based firm is building a new cloud business to sell access to its AI models and compute capacity. Meta declined to comment on the report.

The company is still debating whether the cloud business should sell access to its own AI models or to raw computing power, with plans subject to change. Meta raised its spending forecast to $145 billion in April. ” “Almost every week there are different companies that come to us from the outside asking us to both stand up an API service or asking if we have compute that they could buy from us at some premium to what we’ve bought it at,” Zuckerberg said.

He added that Meta has not sold excess compute yet because it believes it has a use for the capacity. Last summer Meta paid $15 billion to hire Alexandr Wang and take a 49 percent stake in Scale AI. The company released its first AI model under Wang’s lead in April.