Mark Zuckerberg's Meta Is Entering What Could Be a $2 Trillion Cloud Market. CoreWeave Stock Fell 14% on the News.
Key Points
Meta Platforms is considering different plans to sell access to its cloud infrastructure.
The news sent Meta's stock price higher, but shares of cloud computing company CoreWeave dropped 14%.
Meta's plans aren't finalized, but any new announcements could continue to drag down CoreWeave's stock price.
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Meta Platforms (NASDAQ: META) hasn't had the best performance thus far in 2026, as the stock has fallen nearly 7% as of this writing. But a recent announcement from CEO Mark Zuckerberg's company could reignite investor enthusiasm for some.
On July 1, Bloomberg reported Meta was planning to sell access to artificial intelligence (AI) computing power and models. That was enough to send Meta's stock price up 8.6% the following trading day. For cloud computing provider CoreWeave (NASDAQ: CRWV), however, the story was different.
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Good news for Meta shareholders
By 2030, Goldman Sachs Research forecasts that cloud computing revenue could reach $2 trillion. For Meta, renting out excess computing capacity can be not only a revenue generator but also help offset some of the company's aggressive spending. It plans to spend up to $145 billion in 2026 to build out AI infrastructure.
According to the Bloomberg report, Meta is planning to either sell pure computing capacity or sell access to AI models. Access to the AI models would reportedly follow a similar structure to how Amazon runs its Amazon Web Services Bedrock platform, with Meta running its own data centers and semiconductors that power AI models developers pay to access.
Not-so-good news for CoreWeave shareholders
The CoreWeave stock price reacted differently to the Meta news. If Meta ends up selling raw computing capacity, it's not just entering another company's turf, since Meta is also a CoreWeave client, with a $21 billion deal for AI cloud capacity that runs through 2032. That raises the possibility that CoreWeave will eventually lose a client while gaining a competitor.
When Meta announced its news on July 1, CoreWeave shares fell roughly 14% the following trading day.
Meta is reportedly still in the planning stage of setting up cloud infrastructure, so nothing is finalized. But if Zuckerberg's company were to move forward with renting out excess computing capacity, it would likely put even more pressure on the CoreWeave stock price.
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Jack Delaney has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Goldman Sachs Group, and Meta Platforms. The Motley Fool has a disclosure policy.
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