Meta’s reported plans weigh on AI infrastructure providers
Shares of CoreWeave (NASDAQ:CRWV) and Nebius Group (NASDAQ:NBIS) fell more than 6% on Wednesday after a Bloomberg report suggested that Meta Platforms is preparing to expand into the cloud infrastructure market.
The report indicated that Meta is exploring ways to commercialise its artificial intelligence infrastructure by offering customers access to AI computing resources and foundation models.
Meta reportedly considering multiple cloud services
According to Bloomberg, Meta is evaluating a business model that would allow developers to access AI models hosted on its infrastructure.
The company is also said to be considering offering direct access to raw computing capacity, placing it in competition with neocloud providers such as CoreWeave.
Investors assess competitive implications
The report prompted a sell-off in companies exposed to AI cloud infrastructure as investors weighed the potential impact of a major new entrant into the market.
CoreWeave has built its business around providing GPU-accelerated cloud computing services for artificial intelligence workloads, while Nebius has also been expanding its AI infrastructure capabilities.
The prospect of Meta entering the sector raised concerns that competition could intensify as demand for AI computing resources continues to grow.