Meta becomes one of Microsoft’s largest AI customers: report

Bloomberg reports that Meta Platforms has become one of Microsoft’s largest AI customers, spending hundreds of millions of dollars annually to access AI models via Azure. The relationship highlights Microsoft’s growing AI revenue stream but also its concentration risk, since a large share of AI-related revenue still comes from a few major clients such as Meta and OpenAI. Meta uses external models to support software development and evaluation while continuing to build its own AI capabilities. The report also notes a potential future competitive angle: Meta is developing its own AI model access business through an API service, which could eventually compete with Microsoft’s Foundry offering. Market-wise, the article underscores both the strength of demand for cloud AI services and the competitive overlap emerging among major tech platforms.