- Meta's stock rose 7% on plans to sell excess AI computing capacity, potentially competing with AWS, Azure, and Google Cloud.
- Criticism centers on the high cost and community resistance to building AI data centers in the U.S., with Gulf nations like Saudi Arabia offering cheaper, sovereign wealth-backed alternatives.
- Skepticism exists about Meta's fit in the cloud market, as shifting from billions of social users to few data center customers is seen as a difficult pivot with limited appeal.
- Market optimism for Meta's new venture may underestimate the challenges of entering a competitive field, despite past attempts like Threads.
- Long-term bullishness remains on Meta's AI and open-source models, like Llama, which could enhance advertising efficiency and benefit consumers through lower costs.
- The cloud move is viewed as a tactical detour rather than a major strategy, as Meta's strength lies in advertising and social media, not infrastructure diversification.