Meta Platforms shares rose more than 6% on July 10. Bank of America analysts report the company is building AI infrastructure with unexpected cost efficiency. Buildout costs per gigawatt may be nearly 50% lower than previous Wall Street estimates.
An internal memo reveals Meta will start manufacturing its custom Iris AI chip in September. The proprietary processor aims to reduce long-term reliance on expensive third-party hardware.
Meta also plans to leverage its efficient infrastructure to launch an AI cloud service. This strategy could transform a major cost center into a revenue stream by renting excess computing power.