Meta Enters Cloud Computing Race Against AWS
Meta Platforms is reportedly developing a cloud service to rent out its artificial intelligence computing power, aimed at competing with Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. The news was reported on Wednesday, but Meta has not confirmed the plans, which could still evolve.
In the first quarter of 2026, AWS reported a 28% year-over-year revenue increase, reaching $37.6 billion, while generating $14.2 billion in operating income, accounting for nearly 60% of Amazon’s total operating income of $23.9 billion. Despite the potential competition, Amazon shares rose modestly to $241.70 on the same day Meta’s news broke.
Analysts note that AWS’s extensive suite of services and enterprise relationships make it a formidable competitor, suggesting that Meta will mainly contend with smaller AI-capacity providers. Amazon remains focused on growth, with projected second-quarter sales growth between 16% and 19%, signaling sustained demand in the cloud sector.
5 Stocks Our Experts Predict Could Double In the Next Year
By submitting your email, you'll also get a free pivot & flow membership. A free daily market overview. You can unsubscribe at any time.
