Meta is planning to sell excess AI computing power through a new cloud business called Meta Compute, led by Santosh Janardhan, Daniel Gross, and Dina Powell McCormick. This move puts Meta in direct competition with AWS and could change the dynamics of the AI infrastructure market.
Meta has spent around $48 billion on GPU capacity and its shares rose more than 10% after a report on the plans. The company's decision has sparked market debate about AI infrastructure demand and the potential for an industry-wide surplus.
NVIDIA, Microsoft, and Broadcom are among the top AI stocks to buy in July, with NVIDIA's data center sales growing 92% YoY and Microsoft's AI business surpassing an annual revenue run rate of $37 billion, up 123% YoY.
Microsoft is also merging its consumer and enterprise versions of Copilot AI chatbots into a single application, aiming to create a more general-purpose AI tool. Meanwhile, Brookfield Asset Management plans to build AI data centers in London's Canary Wharf, and Simplilearn has launched an AI-first skilling library with over 1,000 courses.
Kawasaki Heavy Industries plans to raise $1.23 billion to fund investments in physical AI and other growth areas. In contrast, Morningstar analyst Lorraine Tan warns of a potential 20-30% correction in AI stocks, citing expected peak AI capex growth in 2026.
Key Takeaways
['Meta to sell excess AI computing power through Meta Compute, a new cloud business.', 'Meta has spent $48 billion on GPU capacity, competing with AWS.', 'NVIDIA, Microsoft, and Broadcom are top AI stocks to buy in July.', 'Microsoft merging consumer and enterprise Copilot AI chatbots into a single app.', "Brookfield plans AI data centers in London's Canary Wharf.", 'Simplilearn launches AI-first skilling library with over 1,000 courses.', 'Kawasaki Heavy to raise $1.23 billion for AI investments.', 'Morningstar warns of 20-30% correction in AI stocks.', "Meta's move sparks market debate on AI infrastructure demand.", 'South Korean stocks slump 6% on AI jitters.']Meta plans to sell excess AI computing power
Meta is building a cloud business to sell excess AI computing capacity. The initiative, dubbed Meta Compute, is led by Santosh Janardhan, Daniel Gross, and Dina Powell McCormick. This move puts Meta in direct competition with AWS. Meta has been one of the neocloud sector's most important customers, spending roughly $48 billion on GPU capacity. The company's shares rose more than 10% after a Bloomberg report on the plans.
Meta building cloud business to sell excess AI capacity
Meta Platforms is building a cloud business to sell excess artificial intelligence computing capacity, according to a Bloomberg News report. The plans are still in development and the strategy could change. Meta shares rose more than 10%, easing pressure on a stock that has underperformed the S&P 500 this year with a nearly 15% decline.
Meta's AI computing power sales spark market debate
Meta's plan to monetize excess computing power through its new 'Meta Compute' unit has sparked market volatility regarding AI infrastructure demand. The move provides a short-term EPS tailwind rather than signaling an industry-wide surplus, reinforcing the company's commitment to optimizing infrastructure utilization.
Excess AI capacity hits AI infrastructure bubble
Meta's plan to sell its excess computing power has sparked concerns about the AI infrastructure bubble. The company's move implies it may not need neoclouds like CoreWeave and Nebius anymore. Analyst Gil Luria suggests that Meta's move could lead to a contraction in expected procurement demand for upstream chips and memory.
Morningstar warns of 30% crash in AI stocks
Morningstar analyst Lorraine Tan warns that Micron faces a 20 to 30% correction as Samsung and SK Hynix supply floods the memory market. AI capex growth is expected to peak in 2026, with spending increases slowing materially through 2029.
Top AI stocks to buy in July
NVIDIA, Microsoft, and Broadcom are top AI stocks to buy in July. NVIDIA's data center sales grew 92% YoY, while Microsoft's AI business surpassed an annual revenue run rate of $37 billion, up 123% YoY. Broadcom's AI semiconductor revenue jumped 143% YoY.
South Korean stocks tumble 6% on AI jitters
South Korean stocks slumped as Meta's plan to sell computing power raised questions over excess in AI capacity, driving a selloff in chipmakers. The country's stocks fell 6% on July 2, 2026.
Brookfield plans AI data centers in London
Brookfield Asset Management wants to build AI data centers in London's Canary Wharf. The firm has a multi-gigawatt portfolio of data centers globally and a growing pipeline of sites under construction and in development.
Simplilearn launches AI-first skilling library
Simplilearn launched SkillUp, an AI-first skilling library with over 1,000 courses spanning AI, Data Science, Cloud, Cybersecurity, and more. The platform serves individual learners and enterprise teams.
Microsoft AI app overhaul
Microsoft is merging consumer and enterprise versions of its Copilot AI chatbots into a single application called Copilot. The goal is to create a more general-purpose AI tool that can be used for a wide range of tasks.
Kawasaki Heavy to raise funds for AI investment
Kawasaki Heavy Industries plans to raise roughly $1.23 billion through new shares and convertible bonds to fund investments into physical artificial intelligence and other growth areas.
Startup sues Palo Alto Networks' Koi Security
MeetingTV sued Palo Alto Networks' Koi Security, alleging that an AI-generated report falsely linked it to a Chinese corporate espionage operation.
Sources
- Meta reportedly plans to rent out its AI compute, sending AI stocks tumbling — 'Meta Compute' would put company in direct competition with AWS
- Meta building cloud business to sell excess AI capacity, Bloomberg News reports
- Meta's Computing Power Sales Ignite Wall Street Debate: Will the AI Infrastructure Bubble Burst?
- 'Meta will need to reduce or possibly stop AI investment in datacenters, as it already has excess capacity': The AI infrastructure bubble feels the heat
- Morningstar Warns Of 30% Crash In AI Stocks, Is It Time To Sell Micron?
- 3 Top AI Stocks to Buy in July
- South Korean Stocks Tumble 6% as AI Jitters Hurt Chipmakers
- Brookfield wants to build AI data centers in London’s answer to Wall Street
- Simplilearn Launches SkillUp - The AI-First Skilling Library Built for the Age of AI
- Microsoft Memo Details AI App Overhaul to ‘Earn the Right to Exist’
- Kawasaki Heavy to raise over $1bn via new shares, bonds for AI investment
- Startup sues Palo Alto Networks' Koi Security, saying an AI-hallucinated report falsely linked it to Chinese espionage
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