Meta Platforms shares surged more than 6% in Wall Street trading on Wednesday after reports emerged that the company is preparing to launch a cloud computing business.
The new venture would see Meta selling artificial intelligence computing power to external customers, effectively monetizing the vast infrastructure it has built for its own AI initiatives.
The market reaction was swift and positive, with investors rewarding the prospect of a new revenue stream.
The move signals a shift in strategy for the social media giant, which has faced intense scrutiny over its massive capital expenditures on AI infrastructure.
By opening its cloud capacity to third parties, Meta aims to improve the return on its data center investments.
This development comes after a period of volatility for the stock.