JPMorgan Chase: Meta's cloud plan may indicate slow progress in its AI efforts.

JPMorgan believes that if Meta decides to launch cloud infrastructure business, 1 gigabyte of computing power could bring Meta about $20 billion in annual revenue and several dollars in earnings per share. There have been reports that Meta is considering this move. However, JPMorgan analysts also believe that this indicates the company lacks progress in proprietary AI work. "We would prefer Meta to develop core AI products, leverage its user base of 4 billion, and provide massive computing power for its own inference needs, rather than selling rights to use its infrastructure," JPMorgan analysts said in a report. "This still shows us that Meta's attractiveness in AI products outside of advertising is still limited." Meta's stock fell more than 4%.