[AI Computing Power] Meta, the biggest buyer, makes a sharp turn; reportedly selling its remaining "computing power," shaking up the AI industry chain.

Meta (US: META) is reportedly making a major strategic shift that shakes up the AI industry chain. According to Bloomberg, Meta, previously the largest buyer of computing power, is now turning to selling computing power, generating revenue by selling excess computing capacity to external customers.

CoreWeave (US: CRWV) fell 12%, Nebius (US: NBIS) fell 13%, Micron (US: MU) dropped 6%, and Meta (US: META) surged 9%.

The report indicates that Meta is developing a cloud infrastructure business plan to sell access to AI computing power and models, putting it in direct competition with industry leaders such as Amazon's AWS, Microsoft's Azure, and Google Cloud. Even SpaceX, which is aggressively pursuing orbital computing power, also fell.

According to people familiar with the matter, one potential plan includes selling access to various AI models hosted on Meta's existing AI infrastructure, a method similar to AWS's Bedrock service. Meta would operate the data centers and chips driving these models (including its own Muse Spark model) and charge developers for access.

The company is also considering selling access to "raw" computing power, similar to what so-called "neocloud" companies like CoreWeave offer.

Meta, which has made developing AI "superintelligence" a top priority, has invested hundreds of billions of dollars in data centers and other AI infrastructure—such as the expensive chips it believes are necessary to achieve that goal. This massive investment has left investors anxious about how Meta will generate returns from these expenditures, including major computing power deals with companies like CoreWeave, Google, and Oracle.

A cloud business offers a way to recover some of that investment. AWS, Azure, and Google Cloud have spent decades building platforms that rent out access to computing power, storage, and software over the internet—businesses that now generate tens of billions of dollars in revenue each quarter.

Meta CEO Mark Zuckerberg has signaled to investors that he is open to selling excess computing infrastructure. During the May earnings call, he said, "Almost every week, different external companies come to us, either wanting us to build an API service or asking if we have computing power to sell to them, offering prices that are even a bit higher than what we paid."

"We haven't done that yet because we think we still have a use for that computing power," Zuckerberg said at the time. "But obviously, if we ever get to the point where we feel we've overbuilt, that's an option we have, and it's part of why we feel confident investing in expanding our infrastructure."