Should Nebius and CoreWeave Investors Be Scared by Meta's Latest Plans?
There are two different ways to interpret Meta Platforms' apparent plans to start leasing its spare cloud capacity.
Overview
Neocloud companies CoreWeave (NASDAQ: CRWV) and Nebius (NASDAQ: NBIS) each have major deals with Meta Platforms (NASDAQ: META). While the social media giant is still building out its own data center footprint, it has also secured leases with CoreWeave and Nebius to gain access to additional computing power in the meantime. It's doing this to give itself the best shot at developing an artificial intelligence model that can rival those produced by the other AI hyperscalers.
However, recent news suggests that Meta's approach could be changing, and that possibility ignited a sell-off in Nebius and CoreWeave's stocks. CoreWeave is now down by 35% from its 2026 high, and Nebius is down by nearly 25%. So, what caused these stocks to crater? Word that Meta plans to launch its own cloud computing service.
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Originally published at www.fool.com.