Global Markets See a Strong Rise in Meta Platforms Shares

Meta Platforms shares jumped 6% in premarket trading following a report that the company is preparing to enter the cloud computing market by making its computing power and artificial intelligence (AI) models available to external clients. This move aims to transform its substantial investments in data centers into a new revenue stream.

Meta intends to pursue two main monetization models:

Model-as-a-Service (MAS): Providing access to AI models hosted on its infrastructure for a fee.

Raw Compute Infrastructure (RCI): Selling computing power directly, positioning it to compete with both traditional and emerging cloud service providers.

This approach poses a direct challenge to major cloud computing companies such as Amazon Web Services, Microsoft Azure, and Google Cloud, as well as companies like CoreWeave, negatively impacting the shares of some competitors.

Investors believe this move enhances Meta's chances of achieving long-term returns from its massive investments in artificial intelligence, especially with the stock's recovery after recent legal pressures that prompted the market to reassess the company's future growth prospects.