Zuckerberg Says Meta Cloud Business Is 'Definitely on the Table' as AI Capex Hits $145 Billion
- Zuckerberg told Meta's annual shareholder meeting on May 27 that a cloud computing business is 'definitely on the table' if the company overbuilds data center capacity [1]
- Companies approach Meta 'almost every week' asking to buy API services or computing power, but Meta has not yet sold externally [1]
- Meta raised its 2026 AI-related capex guidance to $125–$145 billion, up from a prior $115–$135 billion range [2]
- The company launched 'Meta Compute' in January 2026, targeting tens of gigawatts of AI infrastructure capacity this decade [4]
- AWS, Azure, and Google Cloud currently control roughly 67% of the $600+ billion cloud market [3]
Meta CEO Mark Zuckerberg said at the company's annual shareholder meeting on May 27 that launching a cloud computing business is "definitely on the table," the clearest signal yet that Meta is weighing a direct challenge to Amazon Web Services, Microsoft Azure, and Google Cloud [1]. Zuckerberg framed the move as contingent on whether the company's massive data center buildout produces more capacity than it needs for its own AI workloads.
"Almost every week there are different companies that come to us from outside asking us to both stand up an API service or asking if we have compute that they could buy from us at some premium to what we've bought it at," Zuckerberg said, according to CNBC [1]. He added that Meta has not yet rented out computing resources because it believes it has a use for the capacity, but acknowledged: "If we get to a point where we feel that we have overbuilt, then that is an option that we have."
The comments come as Meta has raised its 2026 AI-related capital expenditure guidance to between $125 billion and $145 billion, up from a prior range of $115 billion to $135 billion [2]. Meta spent $19 billion on capital expenditures in Q1 2026 alone, according to its most recent quarterly filing. The company's stock rose 3.7% on the day to $635.26, giving it a market capitalization of roughly $1.6 trillion [6].
What Happened
Zuckerberg made the remarks during a question-and-answer session at Meta's virtual-only 2026 annual shareholder meeting, held May 27 at Meta's Menlo Park headquarters [5]. Asked whether Meta would compete with Amazon and Microsoft in cloud computing, Zuckerberg described the opportunity as a natural hedge against overinvestment in AI infrastructure.
The comments represent a significant escalation from Meta's January 2026 announcement of 'Meta Compute,' a top-level organizational initiative to build AI data center capacity at unprecedented scale. Meta Compute is co-led by head of global infrastructure Santosh Janardhan and Daniel Gross, a former CEO of Safe Superintelligence who joined Meta after the company failed to acquire SSI [4]. Zuckerberg has previously said he expects Meta to spend $600 billion on AI infrastructure and jobs by 2028 [4].
The Infrastructure Behind the Ambition
Meta operates more than 30 data centers and is building AI facilities ranging from 1 to 5 gigawatts of capacity, with a long-term goal of reaching 'tens of gigawatts this decade and hundreds of gigawatts or more over time' [4]. A single project in Louisiana alone carries a $27 billion price tag [3].
The scale of investment is evident in Meta's financials. In Q1 2026, the company generated $56.3 billion in revenue and $26.8 billion in net income, while spending $19 billion on property, plant, and equipment — leaving free cash flow of $13.2 billion for the quarter [6]. The company's annualized capex run rate now exceeds $75 billion, and the raised full-year guidance of $125–$145 billion implies a sharp acceleration in the back half of 2026 [2].
Meta also announced its next-generation AI supercomputing clusters: the Prometheus supercluster expected in 2026 and Hyperion, described as having a Manhattan-sized footprint [3]. These projects underscore the sheer physical scale of Meta's infrastructure ambitions — and the potential for excess capacity if internal AI workloads don't absorb it all.
The Competitive Landscape
Entering cloud computing would pit Meta against deeply entrenched incumbents. AWS holds roughly 31% of the cloud infrastructure market, Microsoft Azure commands about 25%, and Google Cloud holds approximately 11%, in a market exceeding $600 billion annually and growing at double-digit rates [3].
Meta currently lacks several prerequisites for an enterprise cloud business: a dedicated sales force for B2B customers, enterprise-grade security certifications, compliance frameworks, and customer support infrastructure [3]. However, the company's cutting-edge AI infrastructure — built to train and serve its own large language models — represents a potential differentiator, particularly for AI-native workloads.
A Meta cloud offering would also create tensions with existing partnerships. Meta has a $10 billion-plus arrangement with Google Cloud, a relationship that would grow complicated if both companies were competing for the same enterprise customers [3].
Why It Matters
Zuckerberg's remarks echo a pattern familiar to the tech industry. Amazon launched AWS in 2006 to monetize excess e-commerce infrastructure; today, AWS generates more operating income than Amazon's retail division. If Meta follows a similar trajectory, even a modest share of the cloud market would represent a significant new revenue stream for a company that still derives the vast majority of its $220 billion-plus annual revenue from advertising.
The comments also reframe Meta's unprecedented capital spending. Wall Street has questioned whether $125–$145 billion in annual capex is prudent for a company whose core business is social media advertising. Zuckerberg's framing — that excess capacity can be monetized via cloud services — provides a built-in hedge narrative, suggesting the infrastructure investment carries option value beyond Meta's internal AI needs.
Meta shares are down roughly 3.8% year-to-date and about 20% below their 52-week high of $796.25, reflecting investor unease about the pace of AI spending [6]. The cloud disclosure may offer investors a new lens through which to evaluate the return profile of Meta's infrastructure bets.
What's Next
Zuckerberg offered no timeline, product details, or formal commitment to launching a cloud service. Analysts note that two signals would indicate actual execution: hiring of enterprise cloud sales talent and the announcement of developer-facing tools for external compute access [3].
For now, Meta's cloud ambitions remain conditional — a strategic option rather than a business plan. But with nearly $20 billion per quarter flowing into data center construction and companies already knocking on the door asking to buy capacity, the question is shifting from whether Meta can build a cloud business to whether it can afford not to.
Companies mentioned
Meta Platforms Inc., which operated as Facebook, Inc. until its October 2021 rebranding, is a technology enterprise focused on developing innovative products that empower people globally to connect and share with their …
Amazon.com, Inc. operates a vast global retail enterprise, distributing consumer goods and subscription services through both its extensive online platforms and a network of physical stores across North America and inte…
Microsoft Corporation is a prominent global technology firm that invents, markets, and provides ongoing assistance for a diverse range of software, digital services, computing devices, and comprehensive solutions. Its o…
Alphabet Inc. provides a diverse range of products and digital platforms to consumers across multiple global regions, including North and South America, Europe, the Middle East, Africa, and the Asia-Pacific. The company…