Meta exploring potential revenue stream by renting excess AI computing capacity

Analyst Mark Mahaney at Evercore ISI has outlined a potential new revenue source for Meta if the company rents out excess artificial intelligence computing capacity it does not need for its own operations. Meta is reportedly planning to double its computing capacity from 7 gigawatts in 2026 to around 14 gigawatts by 2027. Mahaney estimates that renting just one gigawatt of capacity, representing 7 percent of Meta's planned total, could generate up to $22 billion in annual gross revenue starting in 2027 and contribute $4.32 in annual earnings per share. The analyst frames this as a call option rather than a forecast because Meta may require all of its computing power for its own ambitious AI initiatives. CEO Mark Zuckerberg has indicated the company received offers to rent its computing capacity at a premium but believes greater returns come from using that capacity to sell AI services directly.

1. Evercore ISI analyst Mark Mahaney raised his price target to $860 based on compute rental opportunity.
2. Meta plans to double computing capacity from 7 gigawatts in 2026 to approximately 14 gigawatts by 2027.
3. Mahaney estimates one gigawatt of rentable capacity could generate $22 billion in annual gross revenue.
4. Meta has commitments of roughly $35 billion to CoreWeave and up to $27 billion to Nebius Group for compute capacity.
5. CEO Zuckerberg believes Meta can earn more by using capacity to sell AI services rather than renting capacity directly.
6. Mahaney describes the compute sales opportunity as a call option, not a forecast.