Meta, SpaceX turning excess AI compute into cash

Meta is exploring a new revenue source by using its large AI infrastructure. The organization, which has spent billions on data centers for its artificial intelligence projects, is reportedly planning to offer access to its compute power and AI models. A report this week indicated that Meta is developing a cloud infrastructure business, a move that would directly challenge major cloud providers like Amazon Web Services, Google Cloud, and Microsoft Azure.

This potential change comes weeks after SpaceX, through its xAI division, announced similar plans. In early May, SpaceX signed a deal with Anthropic to purchase all compute capacity at its Colossus 1 data center. Additional agreements with Google and Reflection AI followed. Meta’s reported move suggests that control over data centers, rather than just model quality, could define success in the AI race.

Such a strategy depends on continued demand for compute resources and the long-term value of data centers. Some analysts argue the rapid expansion of AI infrastructure has created a bubble. The high cost of chips and uncertainty about future revenue streams from AI services have raised questions about whether these investments will pay off.

Despite these concerns, Meta remains committed to its infrastructure spending. As of the end of the first quarter, the organization plans to invest $182.9 billion in AI infrastructure over the coming years. Major projects in Louisiana and Ohio are underway.

The organization does not separately report earnings from Meta AI or its Llama model family. Executives have focused on internal uses of AI rather than public-facing services, suggesting these efforts are not yet a major revenue driver.

To recoup costs, Meta may adopt a model similar to CoreWeave, selling raw compute capacity. The report also noted the organization is considering hosting AI models on its infrastructure. This would mark a departure from its usual focus on internal applications.

TechCrunch has contacted Meta for further details. The organization has not yet responded to requests for comment.