If you’re wondering why the Nasdaq is suddenly tumbling this morning, wonder no more…

Nasdaq moves lower after Meta announces it is to build a cloud business to sell its excess AI compute, weighing on cloud peers like AMZN, ORCL, MSFT and chip and memory names like NVDA, MU, INTO. As Bloomberg reports:

Meta, which has been rushing to secure expensive data centers and other infrastructure to fuel its own artificial intelligence ambitions, is forming a business to generate revenue from excess computing power sold to outside customers, according to people familiar with the matter, who asked not to be named as the details aren’t public.

One potential plan includes selling access to various AI models that are hosted on Meta’s existing AI infrastructure, an approach similar to AWS’s Bedrock offering, the people said. Meta would run the data centers and chips that power the models, including its own Muse Spark models, and charge developers to access them.

Chipmakers are hurting…

This move comes after SpaceX started leasing its ‘excess compute’ raising questions about the potential for cutting CapEx which has perhaps overshot token demand…

META shares are notably higher on the news…

…just as Goldman’s Privorotsky had discussed…

*META SHARES JUMP 8.6% ON PLANS TO DEVELOP A CLOUD BUSINESS

the pivot to rewarding capex cutters begins https://t.co/JlKmRJsV56

— zerohedge (@zerohedge) July 1, 2026

It appears compute is not all that scarce if one of the biggest AI names is starting to sell it https://t.co/FTLsp9QMq7

— zerohedge (@zerohedge) July 1, 2026

…did META just shatter the market’s central premise has been that compute is scarce…

Buckle Up!