Meta Stock Surges 6% After Report It’s Building Its Own Cloud Business

TLDR

• Meta stock jumped ~6% in pre-market trading after Bloomberg reported it plans to build a cloud infrastructure business
• The business would sell access to Meta’s AI computing power and models to outside customers
• CEO Mark Zuckerberg had hinted at selling excess compute capacity at the May shareholder meeting
• The news hit rival neoclouds hard — CoreWeave (CRWV) fell 9% and Nebius (NBIS) dropped 9.8% in pre-market
• The rally came after Meta had already pulled back from its 52-week high of $796.25

Meta Platforms stock jumped roughly 6% in pre-market trading on Wednesday after Bloomberg reported the company is building a cloud infrastructure business to sell AI computing power and models to third-party customers.

Meta Platforms, Inc., META

The move would turn Meta’s massive data center investments into a direct revenue stream, putting it in competition with Amazon Web Services, Microsoft Azure, and Google Cloud.

Meta stock was trading up around 6.2% ahead of the open. The company has a 52-week high of $796.25, and the stock had been under pressure in late June following a federal judge’s decision to allow a multi-state child addiction lawsuit to proceed.

The Bloomberg report cited people familiar with the matter. Meta did not respond to requests for comment.

This didn’t come out of nowhere. At Meta’s annual shareholder meeting in late May, CEO Mark Zuckerberg said selling excess compute capacity was “definitely on the table.” Wednesday’s report suggests those discussions have since moved into concrete planning.

Neoclouds Take the Hit

The cloud announcement was good news for Meta but rough for the so-called neoclouds — companies that already sell AI computing power to businesses.

CoreWeave dropped 9% in pre-market trading. Nebius fell 9.8%. Both companies now face a well-resourced new competitor entering their market directly.

Meta’s pre-market move also outpaced the broader index, suggesting this was a company-specific catalyst rather than a general market lift.

What the Move Means for Meta’s AI Spending

Meta has spent heavily on AI infrastructure over the past two years, with billions going into data centers and custom silicon. Monetizing that capacity externally would give the company a new line of revenue while also offsetting some of those costs.

The company has not announced pricing, launch timelines, or which customers it is targeting. Those details have not been made public.

Investors had already been reassessing Meta’s AI spending. The stock had pulled back from its 52-week high before Wednesday’s report, and the cloud business news appears to have reset expectations around what that spending could eventually return.

CoreWeave was down 10.11% and Nebius was down 13.92% as of the latest pre-market data.

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