Meta, like SpaceX, looks to turn excess AI compute into cash
Meta is developing plans for a cloud infrastructure business, selling access to AI compute power and models. The move would pit it against the big cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure. Meta has spent billions of dollars developing AI and building out data centers to support it.
Key Takeaways
- But now, the company may be preparing to put those data centers to a more immediately profitable purpose.
On Wednesday, Bloomberg reported that Meta is developing plans for a cloud infrastructure business, selling access to both AI compute power and models.
- That is, if the demand for compute continues to hold, and if data centers retain their value.
Some skeptics have warned the race to build out AI infrastructure is creating a bubble that leans heavily on rapidly depreciating chips .
- The Ohio project, which Zuckerberg said would be the size of Manhattan , is expected to come online this year.
Unlike Google and OpenAI, Meta hasn't seen significant demand for its own AI models and services.
- The new business line will be part of a new initiative reportedly dubbed Meta Compute, which is led by head of infrastructure Santosh Janardhan, Meta Superintelligence Labs leader Daniel Gross, and president Dina Powell McCormick.
The report confirms Zuckerberg's May statements that a Meta cloud computing business is "definitely on the table" as a way to get a return on some of the massive investment into its strategy to develop AI "superintelligence.
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Stats & Key Facts
- #9 billion on AI infrastructure in the coming years, including massive ongoing projects in Louisiana and Ohio .
But now, the company may be preparing to put those data centers to a more immediately profitable purpose. On Wednesday, Bloomberg reported that Meta is developing plans for a cloud infrastructure business, selling access to both AI compute power and models. The move would pit it against the big cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure.
Meta's decision to sell off excess compute comes weeks after SpaceX, via xAI, announced similar plans . In early May, SpaceX signed a deal with Anthropic to buy out all of the compute capacity at SpaceX's Colossus 1 data center. SpaceX has signed similar leases since with Google and Reflection AI.
The fact that Meta is doing the same is a signal that the winners of the AI race may not be the ones providing the best models and services, but rather the ones who own the data centers. That is, if the demand for compute continues to hold, and if data centers retain their value. Some skeptics have warned the race to build out AI infrastructure is creating a bubble that leans heavily on rapidly depreciating chips .
For more details please read the original article at TechCrunch AI.
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