Nebius, Coreweave, and IREN Tumble on Meta's Cloud Ambitions. Is This the End of the Neocloud Boom?

Shares of Nebius Group, CoreWeave and IREN fell in morning trading after a Bloomberg report that Meta Platforms is exploring a cloud business called Meta Compute that could sell excess artificial intelligence compute capacity. Nebius and CoreWeave each declined about 15% while IREN dropped about 6.5%. Meta shares rose more than 10%. The report said Meta is considering offering raw GPU capacity or AI-related services though plans remain early and could change. Nebius holds a deal with Meta worth up to about $27 billion over five years and CoreWeave has an agreement reportedly totaling about $21 billion. The market reaction reflects concern that Meta could become a competitor to the specialized AI infrastructure providers known as neoclouds. The source text said Meta's willingness to build tens of gigawatts of AI capacity confirms that compute demand remains massive and that competition signals opportunity rather than collapse. It also noted that customer concentration is a structural risk because Meta and Microsoft have resources to build internally. Neocloud companies still offer advantages including faster deployment of specialized AI infrastructure and flexible capacity for customers needing immediate GPU access.