Meta Is Reportedly Building a Cloud Business to Rival Amazon and Microsoft -- and a Way to Make Its Massive AI Bet Pay Off

Meta is reportedly developing a cloud business called Meta Compute to sell AI computing power and models, competing with Amazon and Microsoft's cloud units. This move could help justify Meta's massive capital expenditure plans ($125-145 billion for 2026) by monetizing excess data center capacity. The stock jumped 8.8% on the news, though the plan remains unconfirmed. Meta's core business is accelerating with 33% year-over-year revenue growth in Q1, and the stock trades at a modest 21x earnings multiple.