Meta (META) stock rose as much as 3% on Monday after the company signed a cloud-computing deal with Nebius (NBIS), worth as much as $27 billion, and is reportedly considering its largest layoffs in several years.

On Monday, Dutch AI data center company Nebius (NBIS) agreed to sell Meta $12 billion in computing capacity starting in 2027, providing Meta with access to Nvidia's (NVDA) Vera Rubin platform. Meta has also committed to purchasing up to $15 billion in additional compute capacity that Nebius has reserved for third-party customers over a five-year period.

Nebius stock jumped over 12% on Monday, adding to its 30% gain over the past month amid several landmark AI deals. Last week, Nvidia disclosed it would invest $2 billion in Nebius to deploy more than ⁠5 gigawatts of data center capacity by the end of 2030.

Read more about Meta's stock moves and today's market action.

A report from Reuters over the weekend that Meta is planning sweeping layoffs also lifted shares on Monday. According to three sources cited by Reuters, Meta is exploring laying off up to 20% of its workforce to help defray the costs of its AI infrastructure build-out.

The date and extent of the layoffs have yet to be finalized, according to Reuters. If Meta follows through with the plans, it would mark its largest restructuring since what CEO Mark Zuckerberg dubbed the "year of efficiency" in late 2022 and early 2023. At that time, the company let go of 21,000 employees in a four-month period.

The reported layoffs come as Meta has spent billions on its artificial intelligence build-out. In 2026, the company forecast spending between $115 billion and $135 billion on AI, up from $72.22 billion in 2025.

A significant portion of its capital expenditures has gone toward its Superintelligence Labs, including the development of in-house chips to meet demand for artificial intelligence. Meta has also spent billions on splashy hires, such as bringing on Scale AI CEO Alexandr Wang as its chief AI officer by spending $14.3 billion to acquire his company, as well as hiring Moltbook's creators, Matt Schlicht and Ben Parr.

Meta has also joined the race to build "AI factories" and expects to spend $600 billion to build β€Œdata centers by 2028. Last month, it broke ground on a $10 billion, 1-gigawatt data center in Lebanon, Ind.

As these investments mount, major tech companies looking to cut costs elsewhere have found that AI disruption can also serve as a convenient cover for economizing.

Last month, Block (XYZ) CEO Jack Dorsey announced he was cutting staff by nearly half (4,000 jobs), saying in an X post that AI was enabling "a new way of working." Similarly, enterprise software firm Atlassian (TEAM) said last week it planned to lay off 10% of its workforce in an AI pivot.

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