'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

4 weeks ago 7

Rommie Analytics

As a PC gamer, you'll be all too familiar with the sky-high prices of memory and storage components. To put it most simply, these frankly eye-watering price tags are largely due to big tech's major players buying up as much DRAM and flash chips as possible in order to fuel their AI ambitions. Well, that strategy may have backfired as some are now trying to figure out what to do with an excess of compute capacity.

Meta is moving into the cloud business in order to sell off its glut of AI compute capacity, according to Bloomberg this week. The plan is in its earliest phase, with those close to the matter claiming the company is still considering its approach.

One idea reportedly being considered is to sell access to AI models already hosted on Meta's existing infrastructure, à la Amazon Web Services' Bedrock. In other words, developers would pay to access AI models like Muse Spark running from Meta's own hardware. Apparently, another plan is to skip the model middleman and simply sell Meta's 'raw' compute power.

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