Meta Weighs AI Compute Rentals and Model APIs, Triggering Broad Hardware and Chip Selloff

Meta has rapidly expanded its AI infrastructure in recent years, with 2026 capital expenditure projected at $125 billion to $145 billion. Commercializing underused computing capacity could boost returns on that investment while directly challenging Amazon AWS, Microsoft Azure and Google Cloud, with implications for expectations around cloud services and chip demand.

Reports emerged on July 1, 2026, that Meta was evaluating a “Meta Compute” initiative that would offer APIs for models including Muse Spark and rent GPU capacity by the hour. Meta surged 8.81% that day to close at $612.91, while CoreWeave plunged 13.92%, TSMC’s ADR fell 6.98%, Micron dropped 10.57% and the Philadelphia Semiconductor Index declined 6.27%.