Meta Platforms saw its share price rise by 6% on the news that its investment in artificial intelligence (AI) cloud services is expected to cost $22 billion per gigawatt of compute power. This figure is half of previous estimates, suggesting a more affordable approach for Meta's AI infrastructure compared to competitors like Amazon and CoreWeave.
The custom chip Iris, which will be used by Meta in its AI cloud initiatives, has entered the development stage. Analysts are now speculating whether this could give Meta an edge over existing players in the market. However, some experts remain skeptical about the company's ability to compete with established giants like Amazon and CoreWeave.
[1] The article from 247wallst.com highlights Meta Platforms' AI cloud ambitions as a potential threat to its competitors. It mentions that the cost of $22 billion per gigawatt is half of previous estimates, implying a more feasible approach for Meta's investment strategy. [2] In contrast, [1] does not provide any direct quotes or specific numbers from other sources, focusing instead on summarizing the news and analysts' opinions.