Meta taps CoreWeave for Nvidia-powered AI infrastructure
CoreWeave (CRWV) stock jumped nearly 12% after the company revealed a massive $14.2 billion multi-year cloud services agreement with Meta (META). The Nvidia-backed AI data center provider will supply Meta with access to Nvidia’s cutting-edge GB300 server racks, each equipped with 72 Blackwell AI GPUs, enhancing Meta’s ability to scale its AI capabilities.
“They loved our infrastructure in earlier contracts and came back for more,” said CoreWeave CEO Michael Intrator, confirming Meta’s renewed interest in the company’s AI infrastructure. Meta has not commented publicly on the deal, which Bloomberg first reported.
Meta expands AI footprint with aggressive spending
The deal comes as Meta accelerates its investment in AI infrastructure, including a 4 million-square-foot data center in Louisiana. In its latest earnings report, Meta raised its 2025 capital expenditure forecast to a staggering $66–72 billion, underscoring its commitment to building one of the largest AI operations in the world.
This partnership follows CoreWeave’s recently announced $6.5 billion agreement with OpenAI, marking another major step in the company’s strategy to reduce its dependence on Microsoft, which currently accounts for about 70% of its revenue.
“This is clearly a step in the right direction for diversification,” added Intrator. Analysts largely welcomed the news, with Bokeh Capital’s Kimberly Forrest calling it a “good deal for both” firms and highlighting the insatiable demand for AI computing power.
Analysts split on long-term implications
Despite the enthusiasm, some analysts remain cautious. David Nicholson from Futurum Group questioned why Meta would rent space rather than continue its tradition of building and managing its own infrastructure. “It doesn’t make sense,” he said, suggesting a potential shift in strategy or supply limitations.
Still, Citi analysts project global AI capital expenditures could reach $2.8 trillion between 2025 and 2029, a forecast that reinforces the scale of opportunity for infrastructure providers like CoreWeave.
Other recent AI mega-deals add context to this surge in spending. Nvidia’s $100 billion investment in OpenAI and the latter’s reported $300 billion agreement with Oracle (ORCL) further signal the explosive demand for high-end chips and cloud compute power.
CoreWeave’s future still faces risks
CoreWeave’s meteoric rise hasn’t come without challenges. Though shares are up 260% this year, the stock remains below its June high of over $183. Its March IPO faced turbulence, and insiders sold off shares in early September, triggering further volatility.
Analysts remain concerned about CoreWeave’s debt load, deteriorating operating income, and heavy reliance on a small number of Big Tech clients — who may eventually abandon third-party services once their own AI data centers are complete and stocked with Nvidia chips.
For now, however, the Meta partnership boosts CoreWeave’s profile as a key infrastructure player in the AI arms race. Whether it can convert this momentum into a sustainable, diversified business model remains the critical question for investors.
