Is Meta Platforms About to Follow in the Footsteps of Elon Musk's SpaceX?
Meta is reportedly building a cloud computing business to rent its spare artificial intelligence capacity.
Overview
Space Exploration Technologies (NASDAQ: SPCX) is Elon Musk's $2 trillion space transportation, satellite internet connectivity, and artificial intelligence (AI) company. Over the past few months, SpaceX has announced a series of deals to rent its excess data center capacity to other AI developers for a lucrative fee, which could amount to billions of dollars in monthly revenue.
According to a Bloomberg report last week, Facebook and Instagram parent company Meta Platforms (NASDAQ: META) is looking to make a similar move. It has aggressively built AI infrastructure over the past few years to train its Llama models, but it appears CEO Mark Zuckerberg wants to unlock a new revenue stream by renting out its spare computing capacity to other developers.
Details
This could be a highly profitable move for Meta, and it comes at a time when its stock trades at a discount to the broader market. However, there is at least one concern worth considering.
Source
Originally published at www.fool.com.