Coreweave Jumps 7% as It Inks $14 Billion Meta Deal in Latest Sign of AI Demand

CoreWeave Inc. has signed a deal to supply Meta Platforms Inc. with as much as $14.2 billion worth of computing power, underscoring the massive costs of developing and running advanced AI models.

Shares of CoreWeave jumped 7% on the news.

“They loved our infrastructure in earlier contracts and came back for more,” Chief Executive Officer Michael Intrator said in an interview. As part of the agreement, CoreWeave will provide the social media giant access to Nvidia Corp.’s latest GB300 systems, he said. Meta didn’t provide comment.

CoreWeave is among an emerging group of “neoclouds,” businesses that rent out access to leading AI chips. Its competitors include Nebius Group and Nscale Global Holdings Ltd. CoreWeave’s stock has more than tripled in value since its March initial public offering as the race among major technology companies to build the most advanced AI models sends computing demand soaring.

The deal with Meta helps further diversify CoreWeave’s business away from Microsoft Corp., which has historically been its largest customer. The software maker accounted for 71% of CoreWeave’s revenue in the quarter that ended in June. The deal follows another multibillion-dollar commitment from OpenAI last week.

“When we came out in the IPO, we got dinged because of our customer concentration,” Intrator said. “This is clearly a step in the right direction for diversification.”