Meta Platforms Inc. is in discussions with Anthropic to lease some of its extensive computing capacity, potentially positioning the social media company as a competitor in the cloud computing market. The talks, which are still in the early stages, could involve a deal worth up to $10 billion over two years, according to a report by the New York Times, although specific figures remain speculative, a source told CNN.
Key Details
Meta has been investing heavily in data center infrastructure to support its artificial intelligence (AI) initiatives, with plans to spend between $125 billion and $145 billion in capital expenditures this year. This amount represents a significant increase from the previous year's spending. In April, Meta announced it would lay off 10% of its workforce, approximately 8,000 employees, to help manage costs associated with these investments.
CEO Mark Zuckerberg indicated at a recent shareholder meeting that the company has considered leasing out surplus computing capacity if its own needs do not fully utilize the infrastructure. He stated,
Almost every week there are different companies that come to us from outside asking us … if we have compute that they could buy from us at some premium to what we’ve bought it at.
The demand for computing power is high as various companies strive to enhance their AI capabilities.
Background
Meta and Anthropic have not publicly commented on the ongoing discussions. The potential partnership could enhance Anthropic's ability to scale its operations as it develops AI technologies.
Related coverage: Meta in talks to lease AI infrastructure to Anthropic.
The discussions could impact cloud computing stocks, particularly those of Amazon, Microsoft, and Google, as Meta's entry into the market may intensify competition. Investors will watch for further developments regarding the deal and any updates on Meta's capital expenditure plans.