CoreWeave has signed a $14.2 billion agreement with Meta to supply computing power, marking its largest multi-billion-dollar deal. The deal includes a commitment from Meta to pay around $14.2 billion through December 14, 2031, with an option to expand through 2032 for additional cloud computing capacity.
Under the agreement, CoreWeave will provide Meta access to Nvidia's latest GB300 systems. This partnership underscores Meta's ambition to improve the technology powering its consumer products, such as smart glasses with Ray-Ban. CoreWeave's shares surged 15% following the news.
The deal is part of a larger trend of AI technology developers rushing to sign multi-billion-dollar deals to lock in infrastructure quickly. This boom has boosted valuations of backend service providers like CoreWeave, which was valued at $60 billion as of last close. However, it has also raised questions about "circular" financing and potential bubble concerns.
CoreWeave's partnership with Meta allows the company to fill its data center capacity beyond its largest customer, Microsoft. Recently, CoreWeave signed a third multi-billion dollar cloud expansion deal with OpenAI, bringing their total contract value to $22.4 billion. The company's aggressive growth strategy is backed by strong operational performance and successful capital raises.
