Artificial intelligence hyperscaler CoreWeave announced a multibillion-dollar agreement with Meta days after reporting a deal with OpenAI.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.“Future AI innovations will ...

Core Insights - CoreWeave, Inc. (Nasdaq: CRWV) is trending due to a significant $14.2 billion deal with Meta, resulting in a stock price increase of 13.15% to $138.63 [3][4] - The company, backed by Nvidia, will provide Meta with access to Nvidia's GB300 server racks, which include 72 Blackwell AI GPUs [4] - CoreWeave has also expanded its agreement with OpenAI, bringing the total contract value with OpenAI to approximately $22.4 billion, including previous agreements [5] Financial Performance - CoreWeave's stock is currently trading at $138.63, reflecting a gain of $16.11 on a trading volume exceeding 46 million shares [3] - The recent deal with Meta is a major contributor to the stock's upward movement, highlighting investor confidence in the company's growth potential [3] Strategic Partnerships - The partnership with Meta is a key development, as it positions CoreWeave as a critical player in the AI infrastructure space [4] - The expanded agreement with OpenAI reinforces CoreWeave's role as a cloud platform for advanced AI workloads, indicating strong demand for its services [4][5]

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Group 1 - CoreWeave has entered a multi-year commercial agreement with Meta to provide AI compute services, with Meta agreeing to pay up to $14.2 billion through December 2031 [1][2] - CoreWeave is pursuing an all-stock acquisition of Core Scientific, which was announced on July 7, leading to a significant drop in Core Scientific's share price from over $18 to under $13 [2] - The acquisition is subject to stockholder approval, with a special meeting scheduled for October 30 to vote on the merger [3] Group 2 - A major shareholder, Two Seas Capital, which owns 6.2% of Core Scientific, is urging investors to vote against the merger, claiming the board did not conduct a thorough market check and that the exchange terms undervalue Core Scientific [4] - Following the merger announcement, Core Scientific's stock experienced an 18% decline, marking one of the worst one-day price drops for an M&A target this century [5] - The decision for Core Scientific shareholders now revolves around whether to accept the merger and align with CoreWeave's AI customer base or to remain independent amid increasing demand for high-density compute capacity [5]

CoreWeave Overview - CoreWeave's shares increased by 15% following the announcement of a $14.2 billion deal with Meta Platforms to provide cloud computing capacity through 2031 [1][2] - The deal includes an option for Meta to expand its commitment for additional cloud computing capacity through 2032 [2] Business Model and Partnerships - CoreWeave operates data centers equipped with Nvidia's latest graphics processing units (GPUs) and rents out capacity primarily for artificial intelligence (AI) applications [3][7] - The company has recently expanded its agreement with OpenAI for an additional $6.5 billion, indicating strong demand for its services [4] Market Position and Financials - CoreWeave is approaching a market cap of $70 billion but is not yet profitable, trading at approximately 13 times forward expected sales [5] - The company has a high debt-to-equity ratio of over 8.3, raising concerns about its financial stability [5] Industry Outlook - As long as companies continue to invest in AI infrastructure, CoreWeave is positioned to benefit from this trend [5][7]

Core Insights - CoreWeave's stock surged over 14% following a $14.2 billion deal with Meta, which will provide access to Nvidia's GB300 server racks containing 72 Blackwell AI GPUs [1] - Meta is significantly increasing its investment in AI infrastructure, raising its 2025 capital expenditure guidance to between $66 billion and $72 billion [2] - CoreWeave recently secured a $6.5 billion deal with OpenAI, aiming to diversify its customer base beyond Microsoft, which previously accounted for about 70% of its revenue [3] Industry Context - Analysts view the CoreWeave-Meta partnership as a positive development, indicating strong demand for high-end AI chips [4] - The AI sector is experiencing a surge in capital expenditures, with Citi analysts predicting a total of $2.8 trillion from 2025 to 2029 [4] - CoreWeave has emerged as a key player in the AI infrastructure space, providing data center services to major tech firms [5] Company Challenges - CoreWeave's IPO in March faced challenges, with concerns over high-interest debt and a concentrated customer base that includes competitors [6] - There are fears that as major tech companies complete their own data centers, they may reduce reliance on CoreWeave's services [6]

Core Insights - CoreWeave's stock surged nearly 12% following a $14.2 billion long-term cloud deal with Meta, marking a significant partnership in the AI infrastructure space [1] - The deal involves CoreWeave providing Meta access to Nvidia's GB300 server racks, each equipped with 72 Blackwell AI GPUs, highlighting the scale of the collaboration [1] - CoreWeave's CEO indicated that Meta's return for more services reflects satisfaction with previous infrastructure contracts [2] Company Developments - Meta is heavily investing in AI infrastructure, including a 4 million-square-foot data center in Louisiana, and has raised its 2025 capital expenditure guidance to between $66 billion and $72 billion [2] - CoreWeave recently secured a $6.5 billion deal with OpenAI, aiming to diversify its customer base beyond Microsoft, which previously accounted for about 70% of its revenue [3] Market Reactions - Analysts have mixed views on the deal; some see it as a positive surprise and indicative of limitless demand for high-end AI chips, while others question the rationale behind Meta renting data center capacity instead of purchasing Nvidia's chips directly [4][5] - The partnership aligns with a broader trend of Big Tech companies increasing compute capacity for AI, with significant investments noted, including Nvidia's $100 billion investment in OpenAI and OpenAI's $300 billion contract with Oracle [6]

Core Insights - CoreWeave has entered into an expanded artificial intelligence cloud computing agreement with Meta Platforms valued at $14.2 billion, running through 2031 [2][4] - CoreWeave's stock surged over 13% to $138.88, marking a 235% increase in 2025 [2][6] - The company reported a Q2 loss of $0.60 per share, an improvement from a $1.62 loss a year earlier, while revenue rose 206% to $1.213 billion, exceeding Wall Street estimates [6][5] Company Overview - CoreWeave specializes in cloud computing services, renting out servers equipped with Nvidia AI accelerators, and has a strategic partnership with Nvidia, which holds a 7% stake in the company [3][5] - The company is positioned as an "infrastructure-as-a-service" provider for AI-centric customers and enterprises looking to deploy AI applications [5][4] - CoreWeave's customer base includes notable names such as Microsoft, OpenAI, Nvidia, Cohere, and Mistral [3][4] Market Position and Ratings - CoreWeave has a Composite Rating of 60 out of a possible 99, indicating a moderate strength in key fundamental and technical metrics [7] - The stock has an Accumulation/Distribution Rating of A-minus, suggesting a trend of institutional buying over the past 13 weeks [8] - Analysts project significant market opportunities for CoreWeave, although concerns exist regarding customer concentration and high debt levels [5]

Core View - CoreWeave Inc. has entered into a multibillion-dollar agreement with Meta Platforms Inc. for cloud computing capacity valued at up to $14.2 billion, effective from December 2023 [1][2] Agreement Details - The agreement was executed on September 25 and includes provisions for termination, indemnification, and limitations of liability [3] - Meta has committed to payments of approximately $14.2 billion through December 14, 2031, with options for expansion through 2032 [2] Growth Strategy - This contract is part of CoreWeave's broader growth strategy, which includes a $6.3 billion arrangement with Nvidia for unused cloud capacity and an expanded agreement with OpenAI valued at up to $6.5 billion [4] - The demand for artificial intelligence infrastructure is driving CoreWeave's rapid expansion [4] Market Performance - Since its March IPO, CoreWeave's shares have more than tripled, supported by contracts with major companies like Microsoft, Nvidia, OpenAI, and now Meta [5] - As of the latest trading, CRWV shares were up 15.20% to $141.14, while META shares were down 1.53% [6]

CoreWeave Inc. said on Tuesday it has struck an agreement to supply Meta Platforms Inc. with up to $14.2 billion of artificial intelligence cloud infrastructure, underscoring the steep costs associate... ...