Meta, like SpaceX, looks to turn excess AI compute into cash

Meta, having invested billions in AI development and data centers, is now looking to monetize its excess AI compute power. Reports indicate the company is developing a cloud infrastructure business to sell access to both AI compute and models, stepping into a competitive landscape dominated by Amazon Web Services, Google Cloud, and Microsoft Azure.

This move mirrors recent actions by SpaceX, which, through xAI, announced similar plans and secured deals to sell its compute capacity. This trend suggests that success in the AI race might increasingly depend on owning and providing data center infrastructure rather than solely on developing superior models or services.

Despite concerns from skeptics about a potential bubble in AI infrastructure driven by rapidly depreciating chips and questions regarding the profitability of AI companies, Meta remains committed. The company has pledged $182.9 billion towards AI infrastructure in the coming years, including massive projects in Louisiana and Ohio.

Unlike some of its competitors, Meta has not yet seen significant external demand for its own AI models like Llama. By potentially offering raw compute capacity, similar to CoreWeave, or selling access to hosted AI models, Meta aims to generate a return on its substantial investment in AI superintelligence. This new initiative, reportedly dubbed Meta Compute, is led by a dedicated team within the company.