Meta (META) Plans AI Cloud Business Amid $19.84B Q1 Spend

Meta Platforms (META) is establishing a cloud business to sell spare AI computing capacity, potentially offering access to its AI models and raw computing power. In Q1, the company reported revenue of $56.31 billion, with $55.02 billion coming from advertising, and an operating margin of 41%. Meta's capital expenditures for the quarter totaled $19.84 billion, with a revised forecast for total capital expenditures by 2026 between $125 billion and $145 billion. This move aims to monetize its investments in AI infrastructure and address investor concerns about the profitability of its spending, contributing to its market capitalization of nearly $1.49 trillion.