CoreWeave (CRWV) shares jumped more than 14% Tuesday after Bloomberg reported the company had secured a $14.2 billion deal with Meta (META), signaling strong demand for high-end artificial intelligence infrastructure. The move underscores the rapid expansion of AI compute capacity and positions CoreWeave as a key partner in Big Tech’s AI buildout.
The Nvidia-backed (NVDA) AI data center operator will provide Meta access to Nvidia’s GB300 server racks, each equipped with 72 Blackwell AI GPUs. CoreWeave CEO Michael Intrator told Bloomberg, “They loved our infrastructure in earlier contracts and came back for more,” highlighting Meta’s confidence in CoreWeave’s capabilities. Neither CoreWeave nor Meta immediately responded to requests for comment from Yahoo Finance.
Meta has been aggressively expanding its AI infrastructure, including a massive 4 million-square-foot data center in Louisiana, and recently raised its 2025 capital expenditure guidance to $66 billion–$72 billion. This latest deal follows CoreWeave’s $6.5 billion contract with OpenAI announced last week, reflecting the company’s strategy to diversify its customer base away from Microsoft (MSFT), which contributed roughly 70% of revenue in the most recent quarter. “This is clearly a step in the right direction for diversification,” Intrator said.
Industry analysts view the Meta deal as a major endorsement of CoreWeave’s offerings. Hedgeye Risk Management analyst Felix Wang, who holds a short position in the stock, called it “a positive surprise,” while Kimberly Forrest, CIO of Bokeh Capital Partners, said the partnership is “a good deal for both” companies and illustrates that current demand for high-end AI chips is “limitless.”
The announcement comes amid a flurry of AI-related investments from Big Tech. Recent deals include Nvidia’s $100 billion investment in OpenAI and OpenAI’s reported $300 billion contract with Oracle (ORCL). Citi analysts forecast that global AI capital expenditures could reach $2.8 trillion from 2025 through 2029, as companies race to expand compute capacity for AI initiatives.
CoreWeave has emerged as a rising player in the AI infrastructure ecosystem, offering large pools of Nvidia GPUs to companies while they build their own facilities. The company went public in March through a turbulent IPO, which tested investor appetite for AI-focused infrastructure firms. Some analysts have expressed concerns over CoreWeave’s high-interest debt, deteriorating operating income outlook, and reliance on a concentrated customer base that includes its own competitors. There is a risk that once Big Tech companies finish building their data centers and secure sufficient GPU supply, their demand for CoreWeave’s compute services could decline.
Despite these risks, the Meta deal represents a major validation for CoreWeave’s strategy and highlights the ongoing surge in AI infrastructure demand, positioning the company at the forefront of one of technology’s fastest-growing sectors.
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