Meta Unveils AI Cloud Services, CoreWeave and Nebius Stocks Plunge Double Digits
META•Meta announced plans to monetize idle AI compute capacity by offering cloud services built on its in-house infrastructure. The announcement triggered 13.9% and 17% drops in CoreWeave and Nebius shares, though one analyst highlights Nebius’s faster growth, expanding margins, positive cash flow, and lower debt.
1. Meta Plans Cloud AI Capacity Service
Meta is exploring a new cloud business offering to lease excess compute capacity originally built for its AI model training and inference workloads. By opening its proprietary infrastructure to external customers, the company aims to tap into the growing demand for high-performance AI compute while improving utilization of its data centers.
2. Sharp Declines in CoreWeave and Nebius Shares
Following the announcement, publicly traded AI cloud specialists CoreWeave and Nebius saw share prices fall 13.9% and 17% respectively, as investors weighed the risk of losing Meta’s custom compute contracts. Both providers have relied heavily on Meta as a cornerstone customer for AI infrastructure services.
3. Analyst Favors Nebius for Rebound
Analyst Daniel Sparks identifies Nebius as the stronger recovery candidate, citing its higher revenue growth rate, improving EBITDA margins, positive free cash flow, and a modest debt profile. In contrast, CoreWeave faces margin compression and services segment debt obligations totaling approximately $25 billion, challenging its near-term profitability.
