Published On 7/2/2026
A report by the American “Bloomberg” news agency revealed Meta’s intentions to enter the cloud computing sector in a move to compete with major companies operating in the cloud services sector such as Amazon AWS, Google, and Microsoft, after the companies spent billions of dollars on building their own data centers that were dedicated to operating artificial intelligence services.
The report stated that the company intends to sell surplus computing power from its data centers through a new sector within the company to enhance the company’s profits, indicating the possibility of the company following an approach similar to that of “Bedrock” from “AWS.”
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Meta’s potential plans include selling access to various AI models hosted in the company’s existing AI infrastructure.
The company is also considering selling pure computing power without providing access to artificial intelligence models in a way that mimics CoreWave, a business sector that has witnessed great popularity recently.
All of these initiatives come under the umbrella of a new sector in Meta called “Compute,” which is dedicated to managing the company’s artificial intelligence infrastructure and is led by the head of the company’s infrastructure department, Santosh Janardhan, along with Daniel Gross, one of the leaders of the artificial intelligence unit in the company’s laboratories, and the company’s president, Dina Paul McCormick.
This news caused Meta’s shares to rebound and their value to increase by 9.3%, which is the largest increase since last April, according to a Bloomberg report. The value of the shares of companies that Meta competes with, such as Core Wave, also decreased by 14%.
In a related context, a report by the American network “CNBC” indicated that the company’s CEO and founder, Mark Zuckerberg, had previously told investors about the possibility of moving in this direction.
This step comes in an attempt to change the structure of Meta’s revenues and income, in which digital advertising on its various platforms is the largest participant, as it constitutes about 98% of its revenues.
Won’t try to compete with Amazon.
Mark Mahaney, a strategic analyst at Evercore, believes that Meta will not try to compete with Amazon, Microsoft, or major players in the cloud services sector, and instead will try to provide services similar to new companies in this sector, which are known as “New Clouds,” according to a CNBC report.
The difference between traditional cloud services companies and “New Clouds” companies is that the latter is dedicated to use with artificial intelligence technologies, as its data centers were built based on products dedicated to artificial intelligence.
Mahaney added that Meta was influenced by the policy of SpaceX CEO Elon Musk, who provides the same services to companies such as Google and Anthropic.
Trap of margins
Despite the general optimism surrounding the “Meta” plan, some experts expressed their concern about this trend and how it will affect the company in general, stressing that the profits of the cloud services sector are not in line with the profits of digital advertisements that the company sells.
The CNBC report states that the gross profit margin of Meta reaches 82%, which is considered the largest among technology companies, but the profit margin of traditional cloud services provided by companies such as Google does not exceed 18%.
The report adds that it takes several years for Google to reach 18% profits, as the company did not achieve it until 2023, even though it began selling cloud services to the public in 2011 and launched the sector in 2008.
It is noteworthy that in recent years, Meta has moved between several pioneering new business models as they emerged, starting with entering the virtual reality sector, then moving to open source artificial intelligence models, then closed models, and finally data centers. Will Meta’s recent move succeed in enhancing its profits? Or will he join the list of jobs that Zuckerberg has abandoned?
