Meta’s AI Compute Push Could Turn Its Massive CapEx Bill Into a Competitive Weapon

Meta is monetizing its surplus GPU capacity by selling raw compute to third-party developers, transforming its massive $125-145B capital expenditure into a revenue stream. This move creates a deflationary pricing floor that threatens pure-play hardware lessors like CoreWeave while leaving enterprise-focused hyperscalers (Amazon, Microsoft) relatively insulated due to their bundled software services. The cheaper compute benefits software-as-a-service companies by reducing development costs.