Is Meta Platforms About to Follow in the Footsteps of Elon Musk's SpaceX?
Yahoo Finance ·
Space Exploration Technologies ( SPCX 0.99% ) is Elon Musk's $2 trillion space transportation, satellite internet connectivity, and artificial intelligence (AI) company. Over the past few months, SpaceX has announced a series of deals to rent its excess data center capacity to other AI developers for a lucrative fee, which could amount to billions of dollars in monthly revenue. According to a Bloomberg report last week, Facebook and Instagram parent company Meta Platforms ( META +3.12% ) is looking to make a similar move. It has aggressively built AI infrastructure over the past few years to train its Llama models, but it appears CEO Mark Zuckerberg wants to unlock a new revenue stream by renting out its spare computing capacity to other developers. This could be a highly profitable move for Meta, and it comes at a time when its stock trades at a discount to the broader market. However, there is at least one concern worth considering.
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