Meta is considering entering the cloud services business by selling its self-built artificial intelligence infrastructure externally, according to analysis from Hanwha Investment & Securities. The move could transform how the market evaluates AI infrastructure investments, shifting perception from pure costs to revenue-generating assets. Kim So-hye, a researcher at Hanwha Investment & Securities, noted that Meta's AI capital expenditures have grown too large to justify through advertising and chatbot revenue alone, creating an opportunity to convert these investments into externally marketable AI infrastructure assets. This development is expected to highlight the value of existing cloud service providers, including Korean companies Naver and Samsung SDS.
Meta Explores Two Cloud Service Models
Meta is examining options to lease its self-built graphics processing units (GPUs) and data centers to external customers, converting AI infrastructure from advertising support infrastructure into a direct revenue source. Two approaches are under consideration: selling AI model access rights similar to Amazon Web Services' Bedrock, and leasing computing resources in the manner of CoreWeave and Nebius. Kim explained that improved AI training efficiency likely created surplus computing capacity in data centers, making infrastructure monetization a logical step for defending return on invested capital (ROIC). She added that Meta's application programming interface (API) pricing competitiveness lags behind OpenAI, Anthropic, and Google, making infrastructure rental and computing sales more practical options.
Existing Global CSPs Maintain Competitive Advantages
Kim assessed that Meta's entry will further emphasize the strengths of established global cloud service providers. She stated that Meta cannot easily replace the positions of major CSPs such as AWS, Azure, and Google Cloud Platform in the near term. Cloud service provision extends beyond GPU ownership alone, she noted, citing persistent gaps between Meta and established providers in security, compliance, data governance, and developer ecosystems.
Korean Companies Naver and Samsung SDS Positioned for Value Growth
While the same logic cannot be directly applied to domestic Korean CSPs, Kim diagnosed that their investment appeal could increase. She explained that Naver and Samsung SDS do not possess the scale of self-owned GPU infrastructure required for surplus computing sales, necessitating different structural logic. However, she emphasized that the key question has shifted to which companies can recover AI infrastructure investments with high ROIC. For Naver, expectations could rise that AI infrastructure investments previously viewed only as advertising and service costs will generate recovery revenue based on business-to-business sovereign AI and public cloud demand. Samsung SDS can anticipate continued strong managed service provider (MSP) revenue as global CSP cloud demand remains solid. Kim maintained her previous view that domestic CSP companies' valuations will increase.
FAQ
What cloud business models is Meta considering?
Meta is examining two approaches: selling AI model access rights similar to AWS Bedrock, and leasing computing resources like CoreWeave and Nebius.
How could Meta's cloud entry affect Korean companies Naver and Samsung SDS?
According to Hanwha Investment & Securities analysis, Naver could benefit from B2B sovereign AI and public cloud demand converting AI investments into revenue, while Samsung SDS could see continued MSP revenue growth from global CSP cloud demand.
