Meta spends hundreds of millions on Microsoft's AI services
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Meta has become one of Microsoft's largest AI customers, spending hundreds of millions of dollars annually to access AI models through Microsoft's Azure cloud service, according to Bloomberg. The company reportedly processes trillions of tokens on the platform every week. Meta's engineers use OpenAI models available through Microsoft's Foundry marketplace to benchmark the performance of Meta's own AI models. At the same time, Meta is building its own API service that could potentially compete with Foundry, following a pattern similar to how Meta once relied on Microsoft's Bing before replacing it with its own technology. Most of Microsoft's biggest AI customers are other tech companies, with ByteDance topping the Foundry customer list, followed by Adobe, Perplexity, and Sierra. However, roughly 70 percent of Microsoft's AI revenue comes from OpenAI alone, which mainly purchases massive amounts of compute through Azure, while Foundry accounts for only a small slice of that business.
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