CoreWeave shares jump 10% on USD14b Meta deal: Bloomberg
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The news: CoreWeave has agreed to supply Meta Platforms with as much as USD14.2 billion ($21.5 billion) worth of computing power to help the social media giant develop and power its advanced AI models, the company told Bloomberg.
The numbers: The USD14.2 billion deal comes just days after CoreWeave expanded its agreement with OpenAI by USD6.5 billion, bringing its total contract to USD22.4 billion.
CoreWeave shares popped 10% in premarket trading in New York. Meta shares were little changed.
The context: “They loved our infrastructure in earlier contracts and came back for more,” CoreWeave CEO Michael Intrator told Bloomberg. As part of the agreement, CoreWeave will provide Meta with access to Nvidia’s latest GB300 systems, Intrator added.
The deal will help Meta to further diversify CoreWeave’s business away from Microsoft Corp., which, accounting for 71% of CoreWeave’s revenue last year, make Microsoft its largest customer.
“When we came out in the IPO, we got dinged because of our customer concentration,” Intrator told the masthead. “This is clearly a step in the right direction for diversification.”
Meta has spent heavily on AI infrastructure as its CEO Mark Zuckerberg doubles down on efforts to compete in the fast moving and capital intensive AI race.
