Meta to build cloud infrastructure business to sell AI compute

Meta is building a cloud infrastructure business to sell AI compute, causing its shares to rise. The move threatens existing AI cloud providers CoreWeave and Nebius Group, which fell about 12% on the news. The development highlights Meta's strategy to monetize excess AI capacity and could reshape competition in the AI cloud market. - Meta shares jump on plans to build a cloud business selling AI compute. - CEO Mark Zuckerberg previously said selling compute via API was an option if the company overbuilt capacity. - The new cloud offering could compete with Amazon AWS, Microsoft Azure, and Google Cloud. - CoreWeave (CRWV) and Nebius Group (NBIS) fell about 12% on the threat of Meta's entry. - Meta appointed Dina Powell McCormick as co-head of the new Meta Compute division in January. - The move signals that Meta sees its AI infrastructure as a potential revenue stream beyond internal use.