Meta Compute launch: META stock slips nearly 2% after reveal

  • Meta Platforms unveiled a new “Meta Compute” initiative to centralize AI infrastructure and data-center management.
  • Shares fell nearly 2% on Monday and closed lower after the announcement.
  • Mark Zuckerberg named Santosh Janardhan and Daniel Gross as co-leads of the effort, with distinct operational and strategic roles.
  • The company said it will accelerate frontier AI and “personal superintelligence” work and invest heavily in data centers and energy capacity, planning “tens of gigawatts this decade, and hundreds of gigawatts or more over time.”
  • Dina Powell McCormick was appointed to lead strategic initiatives; analysts largely maintain Buy/Outperform ratings with price targets from $800 to $935, and the stock traded at $642.

On Monday, shares of Meta Platforms fell about 2% after the company announced a new unit called “Meta Compute,” created to build AI infrastructure and oversee its global fleet of data centers and supplier partnerships as it pursues advanced AI goals. The move aims to centralize technical operations and strategic planning for large-scale AI projects.

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Mark Zuckerberg said the initiative will be co-led by Santosh Janardhan and Daniel Gross. Janardhan will keep managing technical foundations and data-center operations, while Gross will head a new group focused on strategic capacity planning and business partnerships.

The company said it is accelerating investments in frontier AI and personal superintelligence and will expand data-center and energy builds to support those efforts. “Meta is planning to build tens of gigawatts this decade, and hundreds of gigawatts or more over time,” Zuckerberg wrote.

Meta also named Dina Powell McCormick to lead strategic initiatives as the firm increases AI spending. The company’s recent Reality Labs layoffs signal ongoing restructuring amid financial losses tied to that division.

Despite the stock dip, analysts remain mostly positive, with near-universal Buy or Outperform ratings and price targets cited between $800 and $935. The shares were trading at $642 after the announcement, and some firms noted strong price-target records while others offered the most bullish outlooks.

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