CoreWeave signs a $14.2 billion AI deal with Meta
CoreWeave Inc. has signed a deal to provide Meta Platforms Inc. with up to $14.2 billion worth of computing power, underscoring the staggering infrastructure costs behind advanced AI development.
“They loved our infrastructure in earlier contracts and came back for more,” CoreWeave CEO Michael Intrator said in an interview. Under the agreement, Meta will gain access to Nvidia’s latest GB300 systems, a critical resource for training and running large-scale AI models. Meta declined to comment on the deal.
Neoclouds on the Rise
CoreWeave belongs to a new class of providers dubbed “neoclouds” — companies that rent access to cutting-edge AI chips. Competitors include Nebius Group and Nscale Global Holdings Ltd. Since its March IPO, CoreWeave’s stock has more than tripled, driven by surging demand for high-performance computing from AI leaders.
The Meta deal comes just a week after OpenAI announced a separate multibillion-dollar commitment with CoreWeave, further cementing its position as a key supplier in the AI arms race.
Diversifying Beyond Microsoft
Historically, CoreWeave has been heavily reliant on Microsoft, which accounted for 71% of revenue in the quarter ending June. The Meta agreement represents a major step toward diversification.
“When we came out in the IPO, we got dinged because of our customer concentration,” Intrator noted. “This is clearly a step in the right direction for diversification.”
Meta’s Massive AI Bet
Meta has emerged as one of the largest spenders on AI infrastructure. CEO Mark Zuckerberg has committed vast sums to energy, computing, and talent in order to keep pace with rivals. In April, Meta projected capital expenditures of up to $72 billion in 2025, largely dedicated to AI and data center expansion.
This deal reflects that commitment, giving Meta additional access to specialized hardware as it races to develop competitive AI models.
Debt-Fueled Expansion
Like many neocloud providers, CoreWeave relies heavily on debt financing to fund its capital-intensive data center buildouts. “We will tap the debt markets periodically as we continue to expand,” Intrator said.
The approach mirrors moves by larger cloud providers. Meta recently raised $29 billion to fund a new Louisiana data center, while Oracle tapped the bond market for $18 billion to support infrastructure for OpenAI.
With Meta, OpenAI, and Microsoft all in the fold, CoreWeave is positioning itself at the center of the AI infrastructure boom — a market defined by colossal deals and escalating competition.
