Meta shares surge on plan to sell excess AI cloud compute
Meta is weighing sales of excess AI computing capacity as a new revenue stream, while related AI-linked crypto trades such as SNDK fell amid broader profit-taking and concern over infrastructure sentiment.
Meta shares jumped 9% after reports and company comments pointed to a possible business selling excess AI computing capacity from its expanding data center network. Investors viewed the move as a potential way to generate returns on Meta’s heavy AI infrastructure spending and diversify a business that still gets 98% of revenue from advertising, though analysts warned cloud services typically carry lower margins than ads. Meta is considering whether to offer hosted AI models, raw computing power, or both, but has not disclosed pricing, product structure or timing. Separately, AI-linked crypto sentiment weakened: Gate data showed SNDK at $1,743.00, down 14.35%, with a 24-hour low of $1,693.79, while Coinglass reported $82.131 million in 24-hour contract volume and $22.3788 million in open interest.
- AI computing capacity: Processing power used to train or run artificial intelligence systems, often sold as access to chips and data center infrastructure.
- open interest: The value of unsettled derivatives contracts.
- operating margin: The percentage of revenue a company keeps after operating costs, used as a measure of business profitability.