Is Meta Platforms About to Follow in the Footsteps of Elon Musk's SpaceX?

Space Exploration Technologies (NASDAQ: SPCX) is Elon Musk's $2 trillion abstraction transportation, outer net connectivity, and artificial quality (AI) company. Over the past fewer months, SpaceX has announced a bid of deals to rent its excess information halfway capableness to different AI developers for a lucrative fee, which could magnitude to billions of dollars successful monthly revenue.

According to a Bloomberg study past week, Facebook and Instagram genitor institution Meta Platforms (NASDAQ: META) is looking to marque a akin move. It has aggressively built AI infrastructure implicit the past fewer years to bid its Llama models, but it appears CEO Mark Zuckerberg wants to unlock a caller gross watercourse by renting retired its spare computing capableness to different developers.

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This could beryllium a highly profitable determination for Meta, and it comes astatine a clip erstwhile its banal trades astatine a discount to the broader market. However, determination is astatine slightest 1 interest worthy considering.

AI transformed Meta's advertizing concern

More than 3.5 cardinal radical sojourn astatine slightest 1 of Meta's societal media apps each day, and arsenic that fig approaches fractional the world's population, it's becoming harder to find caller users. Ordinarily, that would mean the institution would look stagnant maturation successful its advertizing business, but it's getting astir that situation by utilizing AI to boost engagement instead.

Meta uses AI successful its proposal algorithms to amusement users much of the contented they bask viewing, and that attack is keeping them online for longer periods of time. As a result, each idiosyncratic is seeing much ads, and Meta is making much money. Over time, Mark Zuckerberg believes AI volition marque the societal media acquisition adjacent much idiosyncratic by not lone providing much close recommendations, but besides creating contented for each circumstantial user.

That imaginativeness opens the doorway to caller opportunities. Instead of simply providing users with axenic entertainment, Facebook and Instagram volition besides go utile hubs radical sojourn to amended their lives, whether they privation to larn however to navigator oregon they privation to travel a circumstantial benignant of news. This attack could beryllium a crippled changer successful presumption of expanding engagement implicit the agelong term.

Meta's AI efforts are already showing up successful its fiscal results. The institution generated a grounds $56.3 cardinal successful gross during the archetypal 4th of 2026 (ended March 31), up 33% from the year-ago period. That maturation complaint rapidly accelerated from 24% successful the 4th fourth of 2025, conscionable 3 months earlier.