Meta may soon enter the cloud computing business, potentially competing with companies such as Amazon Web Services, Microsoft Azure and Google Cloud. Meta CEO Mark Zuckerberg said during the company’s annual shareholder meeting that the option is “definitely on the table” as demand for AI computing power continues to grow.The comments come as Meta sharply increases its investment in artificial intelligence infrastructure. The company plans to spend between $125 billion and $145 billion on AI-related capital expenditure this year, one of the largest AI investment plans announced by any technology company.<h2>Why Meta is considering cloud computing</h2>Cloud computing companies provide businesses with servers, storage systems and networking infrastructure needed to run applications and AI services. AI tools such as ChatGPT and Gemini rely heavily on cloud infrastructure to process large amounts of data and run advanced models.According to Zuckerberg, Meta is regularly receiving requests from outside companies looking to purchase computing capacity from the company. He said firms are asking whether Meta could: Offer API-based AI services Lease excess computing infrastructure Provide access to AI servers and processing powerZuckerberg noted that demand for compute has become extremely high due to the rapid expansion of artificial intelligence systems.Meta remains the only major AI player without cloud businessUnlike its biggest competitors, Meta currently does not operate a large commercial cloud platform.Major technology companies already dominating the market include: Amazon Web Services (AWS) Microsoft Azure Google CloudThese companies provide cloud infrastructure to businesses worldwide and generate billions of dollars annually from the sector. Even newer AI-focused firms are increasingly monetising their infrastructure. Recently, SpaceXAI leased its Colossus 1 supercomputer infrastructure to Anthropic for AI model training and operations.<h2>Meta says demand for compute is rapidly increasing</h2>Zuckerberg said Meta currently does not have surplus cloud capacity available for outside companies because the firm is heavily using its own infrastructure for AI projects. However, he added that if Meta eventually builds more capacity than it needs internally, the company could begin selling access to external customers. He stated that the possibility of monetising excess infrastructure is one reason why Meta feels confident investing aggressively in AI data centres and computing systems. Anthropic CFO Krishna Rao recently described computing power as “the lifeblood” of AI companies, highlighting how central cloud infrastructure has become in the AI race.<h2>AI investments come alongside restructuring</h2>Meta’s growing AI focus comes during a period of major restructuring inside the company. The firm recently cut around 8,000 jobs globally while reportedly reassigning another 7,000 employees to AI-focused teams. The company has also closed around 6,000 open positions as it redirects spending towards artificial intelligence development. Despite the restructuring, Zuckerberg has previously said Meta does not currently plan additional layoffs this year. The company is also preparing to test premium subscription services for Meta AI in selected markets as it looks for new revenue streams linked to artificial intelligence.<h2>Why cloud infrastructure has become critical in AI race</h2>Demand for computing infrastructure has surged as companies build larger AI models requiring massive processing power and data storage.Industry analysts say AI development now depends heavily on:Advanced chips High-capacity servers Large-scale data centres Continuous cloud processingThis has made cloud infrastructure one of the most strategically important areas in the technology sector. Meta has not officially confirmed plans to launch a cloud computing platform, but Zuckerberg’s comments suggest the company is exploring the possibility as AI demand continues to grow. If Meta eventually enters the market, it could intensify competition in the global cloud industry, where AWS, Microsoft and Google currently dominate. The development also highlights how the AI boom is pushing major technology companies to expand beyond software and into large-scale infrastructure businesses.

Meta may soon enter the cloud computing business, potentially competing with companies such as Amazon Web Services, Microsoft Azure and Google Cloud. 

Meta may soon enter the cloud computing business, potentially competing with companies such as Amazon Web Services, Microsoft Azure and Google Cloud. Meta CEO Mark Zuckerberg said during the company’s annual shareholder meeting that the option is “definitely on the table” as demand for AI computing power continues to grow. The comments come as Meta sharply increases its investment in artificial intelligence infrastructure. The company plans to spend between $125 billion and $145 billion on AI-related capital expenditure this year, one of the largest AI investment plans announced by any technology company. Why Meta is considering cloud computing Cloud computing companies provide businesses with servers, storage systems and networking infrastructure needed to run applications and AI services. AI tools such as ChatGPT and Gemini rely heavily on cloud infrastructure to process large amounts of data and run advanced models. According to Zuckerberg, Meta is regularly receiving requests from outside companies looking to purchase computing capacity from the company. He said firms are asking whether Meta could: Offer API-based AI services Lease excess computing infrastructure Provide access to AI servers and processing power Zuckerberg noted that demand for compute has become extremely high due to the rapid expansion of artificial intelligence systems. Meta remains the only major AI player without cloud business Unlike its biggest competitors, Meta currently does not operate a large commercial cloud platform. Major technology companies already dominating the market include: Amazon Web Services (AWS) Microsoft Azure Google Cloud These companies provide cloud infrastructure to businesses worldwide and generate billions of dollars annually from the sector. Even newer AI-focused firms are increasingly monetising their infrastructure. Recently, SpaceXAI leased its Colossus 1 supercomputer infrastructure to Anthropic for AI model training and operations. Meta says demand for compute is rapidly increasing Zuckerberg said Meta currently does not have surplus cloud capacity available for outside companies because the firm is heavily using its own infrastructure for AI projects. However, he added that if Meta eventually builds more capacity than it needs internally, the company could begin selling access to external customers. He stated that the possibility of monetising excess infrastructure is one reason why Meta feels confident investing aggressively in AI data centres and computing systems. Anthropic CFO Krishna Rao recently described computing power as “the lifeblood” of AI companies, highlighting how central cloud infrastructure has become in the AI race. AI investments come alongside restructuring Meta’s growing AI focus comes during a period of major restructuring inside the company. The firm recently cut around 8,000 jobs globally while reportedly reassigning another 7,000 employees to AI-focused teams. The company has also closed around 6,000 open positions as it redirects spending towards artificial intelligence development. Despite the restructuring, Zuckerberg has previously said Meta does not currently plan additional layoffs this year. The company is also preparing to test premium subscription services for Meta AI in selected markets as it looks for new revenue streams linked to artificial intelligence. Why cloud infrastructure has become critical in AI race Demand for computing infrastructure has surged as companies build larger AI models requiring massive processing power and data storage. Industry analysts say AI development now depends heavily on: Advanced chips High-capacity servers Large-scale data centres Continuous cloud processing This has made cloud infrastructure one of the most strategically important areas in the technology sector. Meta has not officially confirmed plans to launch a cloud computing platform, but Zuckerberg’s comments suggest the company is exploring the possibility as AI demand continues to grow. If Meta eventually enters the market, it could intensify competition in the global cloud industry, where AWS, Microsoft and Google currently dominate. The development also highlights how the AI boom is pushing major technology companies to expand beyond software and into large-scale infrastructure businesses.

Meta may soon enter the cloud computing business, potentially competing with companies such as Amazon Web Services, Microsoft Azure and Google Cloud.&nbsp;

Meta may enter cloud computing market as AI demand drives need for compute power

Global mergers and acquisitions (M&amp;A) have reached $2.6 trillion in value in the first seven months of 2025, marking the highest total since the pandemic-era surge in 2021. Despite a 16 per cent drop in the number of transactions compared to the same period last year, the overall value of deals has risen by 28 per cent, according to Dealogic data. The sharp increase in deal value is largely driven by large-scale “megadeals”, particularly in the United States, where deals exceeding $10 billion have been prominent. Key transactions fuelling this growth include Union Pacific Corp's proposed $85 billion acquisition of rival Norfolk Southern and OpenAI’s $40 billion funding round, led by SoftBank Group. These deals have helped offset the effects of previous geopolitical uncertainties, including US tariffs, and have given a significant boost to global dealmaking.<h2>Shift towards growth-oriented deals amid political uncertainty</h2>The sharp rise in M&amp;A activity this year follows a period of uncertainty triggered by US President Donald Trump’s tariffs and the broader geopolitical climate. Companies initially held back from dealmaking as they navigated the turbulence created by these factors. However, as market conditions have stabilised and renewed confidence has returned to corporate boardrooms, deal rationale has shifted from defensive to growth-oriented.While the pace of dealmaking is still below the historic highs of 2021, when pandemic-related rebounds led to a record-breaking $3.57 trillion in global deal value, the current surge signals renewed optimism. Despite a nearly $1 trillion gap compared to 2021’s record, financial industry insiders, including dealmakers at JPMorgan, believe that more large deals are on the horizon as executives adapt to ongoing market volatility.<h2>AI and technology set to drive continued M&amp;A activity</h2>Technology and artificial intelligence (AI) are expected to remain key drivers of M&amp;A activity in the second half of 2025. The increasing demand for AI solutions has led to a surge in deals within the computer, electronics, and data centre sectors. A notable example includes Samsung’s $1.7 billion acquisition of FlaktGroup, a German data centre cooling specialist, highlighting the importance of infrastructure that supports AI-driven data needs.Cybersecurity has also been a significant focus, with Palo Alto Networks’ $25 billion deal to acquire Israeli cybersecurity company CyberArk, marking the largest deal in the Europe, Middle East, and Africa (EMEA) region this year. The growing threats posed by AI-driven cyberattacks are pushing companies to bolster their defence strategies, further fuelling the demand for M&amp;A in this space.Private equity has also re-entered the scene, which had previously been sidelined during the early stages of the pandemic. For instance, Sycamore Partners made a $10 billion offer to take Walgreens Boots Alliance private, while private equity firms KKR and Advent made competing offers for UK-based scientific instrument maker Spectris.<h2>US dominates M&amp;A market as Asia Pacific overtakes EMEA</h2>The US remains the largest market for M&amp;A, accounting for more than half of the global deal activity. However, Asia Pacific has shown remarkable growth, with dealmaking doubling compared to the same period last year, surpassing the EMEA region in the process. This trend underscores the increasingly dynamic role that Asia-Pacific economies are playing in global M&amp;A.Despite the challenges posed by ongoing uncertainty, the global M&amp;A landscape remains resilient, with many companies focused on securing growth opportunities, particularly in the technology and AI sectors. As the year progresses, dealmakers expect further large-scale transactions, especially as businesses continue to adjust to the evolving global economic environment.&nbsp;(With inputs from agencies)

The sharp increase in deal value is largely driven by large-scale megadeals, particularly in the US, where deals exceeding $10 billion have been prominent. These megadeals have helped offset the effects of previous geopolitical uncertainties and have given a boost to global dealmaking.

Global mergers and acquisitions (M&A) have reached $2.6 trillion in value in the first seven months of 2025, marking the highest total since the pandemic-era surge in 2021. Despite a 16 per cent drop in the number of transactions compared to the same period last year, the overall value of deals has risen by 28 per cent, according to Dealogic data. The sharp increase in deal value is largely driven by large-scale “megadeals”, particularly in the United States, where deals exceeding $10 billion have been prominent. Key transactions fuelling this growth include Union Pacific Corp's proposed $85 billion acquisition of rival Norfolk Southern and OpenAI’s $40 billion funding round, led by SoftBank Group. These deals have helped offset the effects of previous geopolitical uncertainties, including US tariffs, and have given a significant boost to global dealmaking. Shift towards growth-oriented deals amid political uncertainty The sharp rise in M&A activity this year follows a period of uncertainty triggered by US President Donald Trump’s tariffs and the broader geopolitical climate. Companies initially held back from dealmaking as they navigated the turbulence created by these factors. However, as market conditions have stabilised and renewed confidence has returned to corporate boardrooms, deal rationale has shifted from defensive to growth-oriented. While the pace of dealmaking is still below the historic highs of 2021, when pandemic-related rebounds led to a record-breaking $3.57 trillion in global deal value, the current surge signals renewed optimism. Despite a nearly $1 trillion gap compared to 2021’s record, financial industry insiders, including dealmakers at JPMorgan, believe that more large deals are on the horizon as executives adapt to ongoing market volatility. AI and technology set to drive continued M&A activity Technology and artificial intelligence (AI) are expected to remain key drivers of M&A activity in the second half of 2025. The increasing demand for AI solutions has led to a surge in deals within the computer, electronics, and data centre sectors. A notable example includes Samsung’s $1.7 billion acquisition of FlaktGroup, a German data centre cooling specialist, highlighting the importance of infrastructure that supports AI-driven data needs. Cybersecurity has also been a significant focus, with Palo Alto Networks’ $25 billion deal to acquire Israeli cybersecurity company CyberArk, marking the largest deal in the Europe, Middle East, and Africa (EMEA) region this year. The growing threats posed by AI-driven cyberattacks are pushing companies to bolster their defence strategies, further fuelling the demand for M&A in this space. Private equity has also re-entered the scene, which had previously been sidelined during the early stages of the pandemic. For instance, Sycamore Partners made a $10 billion offer to take Walgreens Boots Alliance private, while private equity firms KKR and Advent made competing offers for UK-based scientific instrument maker Spectris. US dominates M&A market as Asia Pacific overtakes EMEA The US remains the largest market for M&A, accounting for more than half of the global deal activity. However, Asia Pacific has shown remarkable growth, with dealmaking doubling compared to the same period last year, surpassing the EMEA region in the process. This trend underscores the increasingly dynamic role that Asia-Pacific economies are playing in global M&A. Despite the challenges posed by ongoing uncertainty, the global M&A landscape remains resilient, with many companies focused on securing growth opportunities, particularly in the technology and AI sectors. As the year progresses, dealmakers expect further large-scale transactions, especially as businesses continue to adjust to the evolving global economic environment. (With inputs from agencies)

The sharp increase in deal value is largely driven by large-scale megadeals, particularly in the US, where deals exceeding $10 billion have been prominent. These megadeals have helped offset the effects of previous geopolitical uncertainties and have given a boost to global dealmaking.

Global dealmaking hits $2.6 trillion in 2025, boosted by AI and growth-focused M&A activity

Microsoft’s stock surged after a strong earnings report revealed a record $30 billion capital spending forecast for the fiscal first quarter. The software giant’s market cap surpassed $4 trillion in after-hours trading on July 30, marking a key milestone as it joins Nvidia in the exclusive $4 trillion club. Shares of Microsoft jumped 8 per cent following its earnings announcement, lifting the company’s market cap to about $4.1 trillion. This move puts Microsoft in the rarefied ranks alongside Nvidia, which crossed the $4 trillion threshold earlier this month. With the stock up 22 per cent year-to-date, Microsoft is on track to potentially outpace its competitors in capital spending over the next year.<h2>Azure cloud sales and AI investments fuel growth</h2>A major driver behind the company’s surge was its cloud computing business, Azure. Microsoft revealed for the first time that Azure sales had surpassed $75 billion on an annual basis, beating Wall Street’s expectations of $74.62 billion. Azure’s revenue growth was a standout, with a 39 per cent year-over-year increase in the June quarter, outpacing the analyst estimate of 34.75 per cent.For the upcoming fiscal quarter, Microsoft projects Azure revenue growth of 37 per cent, again exceeding analyst expectations of 33.5 per cent. This growth is driven in large part by the company’s heavy investment in artificial intelligence (AI), which has allowed it to develop new products such as the Copilot AI tools. Microsoft reported that Copilot AI tools had surpassed 100 million monthly active users, further showcasing the growing adoption of its AI-powered services.The company’s capital expenditure forecast of $30 billion, which represents the largest for any single quarter, is a clear signal that Microsoft is doubling down on its investments in AI and data centres to meet soaring demand.<h2>Market outlook and competitive edge in AI</h2>Microsoft’s investment strategy and its successful pivot to AI-powered cloud services have positioned the company as a leader in the ongoing AI boom. Although Amazon Web Services (AWS) remains the market leader in cloud services, Microsoft's aggressive spending in AI and data infrastructure has paid off handsomely.The company’s ties to OpenAI, which have allowed it to integrate cutting-edge AI models into products like Microsoft 365, have also helped boost its competitive edge. But investor confidence remains strong, despite concerns over the ongoing renegotiation of Microsoft’s deal with OpenAI, which could affect its stake and access to future technologies.For now, Microsoft appears to be managing this risk effectively by developing in-house AI solutions and expanding its AI model lineup with new partnerships, such as with xAI, Meta, and Mistral.As of July 30, Microsoft’s stock closed at $513.24, continuing its strong performance for 2025. With capital spending poised to reach new heights and Azure leading the way in cloud services, Microsoft’s growth shows no signs of slowing down. As the company focuses on expanding its AI and cloud infrastructure, it remains a key player in the tech world, likely to continue outperforming its competitors in the coming quarters.&nbsp;(With inputs from agencies)

Shares of Microsoft jumped 8 per cent following its earnings announcement, lifting the company’s market cap to about $4.1 trillion. This move puts Microsoft in the rarefied ranks alongside Nvidia, which crossed the $4 trillion threshold earlier this month.

Microsoft’s stock surged after a strong earnings report revealed a record $30 billion capital spending forecast for the fiscal first quarter. The software giant’s market cap surpassed $4 trillion in after-hours trading on July 30, marking a key milestone as it joins Nvidia in the exclusive $4 trillion club. Shares of Microsoft jumped 8 per cent following its earnings announcement, lifting the company’s market cap to about $4.1 trillion. This move puts Microsoft in the rarefied ranks alongside Nvidia, which crossed the $4 trillion threshold earlier this month. With the stock up 22 per cent year-to-date, Microsoft is on track to potentially outpace its competitors in capital spending over the next year. Azure cloud sales and AI investments fuel growth A major driver behind the company’s surge was its cloud computing business, Azure. Microsoft revealed for the first time that Azure sales had surpassed $75 billion on an annual basis, beating Wall Street’s expectations of $74.62 billion. Azure’s revenue growth was a standout, with a 39 per cent year-over-year increase in the June quarter, outpacing the analyst estimate of 34.75 per cent. For the upcoming fiscal quarter, Microsoft projects Azure revenue growth of 37 per cent, again exceeding analyst expectations of 33.5 per cent. This growth is driven in large part by the company’s heavy investment in artificial intelligence (AI), which has allowed it to develop new products such as the Copilot AI tools. Microsoft reported that Copilot AI tools had surpassed 100 million monthly active users, further showcasing the growing adoption of its AI-powered services. The company’s capital expenditure forecast of $30 billion, which represents the largest for any single quarter, is a clear signal that Microsoft is doubling down on its investments in AI and data centres to meet soaring demand. Market outlook and competitive edge in AI Microsoft’s investment strategy and its successful pivot to AI-powered cloud services have positioned the company as a leader in the ongoing AI boom. Although Amazon Web Services (AWS) remains the market leader in cloud services, Microsoft's aggressive spending in AI and data infrastructure has paid off handsomely. The company’s ties to OpenAI, which have allowed it to integrate cutting-edge AI models into products like Microsoft 365, have also helped boost its competitive edge. But investor confidence remains strong, despite concerns over the ongoing renegotiation of Microsoft’s deal with OpenAI, which could affect its stake and access to future technologies. For now, Microsoft appears to be managing this risk effectively by developing in-house AI solutions and expanding its AI model lineup with new partnerships, such as with xAI, Meta, and Mistral. As of July 30, Microsoft’s stock closed at $513.24, continuing its strong performance for 2025. With capital spending poised to reach new heights and Azure leading the way in cloud services, Microsoft’s growth shows no signs of slowing down. As the company focuses on expanding its AI and cloud infrastructure, it remains a key player in the tech world, likely to continue outperforming its competitors in the coming quarters. (With inputs from agencies)

Shares of Microsoft jumped 8 per cent following its earnings announcement, lifting the company’s market cap to about $4.1 trillion. This move puts Microsoft in the rarefied ranks alongside Nvidia, which crossed the $4 trillion threshold earlier this month.

Microsoft’s record capital spending and Azure growth push stock to $4 trillion market cap

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Meta may enter cloud computing market as AI demand drives need for compute power

Global dealmaking hits $2.6 tn in 2025, boosted by AI and growth-focused M&A

Microsoft’s record capital spending, Azure growth push stock to $4 tn market cap