Second-quarter results from Alphabet, Microsoft, and Amazon show their cloud businesses are growing faster than almost anything else these companies do. And Meta wants to follow that playbook.
This comes as the current combined bill for all four companies’ AI capital expenditure is a whopping $725 billion.
Cloud computing—where companies rent computer power instead of owning it—is high margin, and is becoming big tech’s best argument that the AI spending will eventually pay off.
Meta gets cloud curious
Meta doesn’t sell cloud computing currently, but it has started talking about it.
CEO Mark Zuckerberg told analysts in its latest earnings call that the company has fielded offers at a “meaningful premium over what we paid for the compute” from businesses hoping to rent Meta’s AI infrastructure.
