Excess Compute: Ed Elson is joined by Ed Zitron to break down Meta’s move to sell its excess AI capacity and why it’s a bad sign for the AI bubble.
That’s not the narrative, of course.
Meta CEO Mark Zuckerberg appears poised to make a big bet on a potentially big market, but one that commands much slimmer margins than his company’s dominant online ad business.
Cloud infrastructure has proven to be highly lucrative for hyperscaler peers Amazon, Microsoft and Google, and Zuckerberg has hinted of late that Meta could be headed in that direction. On Wednesday, CNBC’s Jim Cramer confirmed that Meta will sell excess computing power to outside customers. The company is debating whether to offer access to AI models hosted on its infrastructure or to sell access to raw computing power, according to Bloomberg.
Wall Street welcomed the news. …