Meta advances AI cloud strategy with Meta Compute

Meta Platforms shares are up 14.8% after the company outlined a broader AI commercialization push centered on Meta Compute, faster production of its in-house Iris AI chip and monetization of advanced models including Muse Spark 1.1. The company also named longtime marketing leader Alex Schultz as its first chief data officer, a move framed around stronger data and AI governance.

The strategy aims to turn years of heavy AI infrastructure investment into an enterprise cloud and tooling business by selling excess compute capacity and packaging AI models for customers. The plan is tied to Meta’s US$125 billion to US$145 billion 2026 capex plan, with investor attention likely focused on whether the new offerings can create revenue streams beyond its social platforms.

Regulatory pressure remains a major counterweight. US and EU actions over youth safety and “addictive” design could weigh on profits, making the pace of customer adoption for Meta Compute central to how investors assess the company’s AI spending and legal exposure.