Meta Platforms (NASDAQ: META) plans to establish a new business unit, “Meta Compute,” to sell excess AI cloud capacity to third-party customers, including raw GPU computing power and remote infrastructure access. This strategic shift was reported on July 1 and may create short-term challenges for neocloud companies like CoreWeave (NASDAQ: CRWV), whose shares dropped nearly 11% following the announcement.
Despite a $21 billion deal with CoreWeave through 2032 for neocloud services, Meta aims to mitigate costs associated with underutilized servers as it invests up to $145 billion this year in expanding its AI infrastructure. Analysts project CoreWeave’s revenue could rise from $5.1 billion in 2025 to $40.3 billion by 2028, which might make its current valuation of 7 times this year’s revenue an attractive buying opportunity, even amid concerns about Meta’s competitive positioning.
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