Key Points CoreWeave equips its data centers with graphics processing units and rents time on them out to companies looking to run artificial intelligence applications. On Tuesday morning, CoreWeave announced a $14.2 billion deal to provide cloud computing capacity to Meta Platforms. As long as companies keep spending on AI infrastructure, CoreWeave should benefit. 10 stocks we like better than CoreWeave › Shares of cloud infrastructure player CoreWeave (NASDAQ: CRWV) were trading 15% higher as o ...

Core Points - CoreWeave has secured a $6.3 billion initial order with Nvidia, ensuring that Nvidia will purchase any unsold cloud capacity until April 13, 2032, solidifying CoreWeave's role as a key partner in Nvidia's cloud strategy [1][2] - Following the announcement, CoreWeave's shares increased by 8%, indicating positive market sentiment regarding the deal [1] - The agreement is seen as a safeguard for CoreWeave, addressing investor concerns about its ability to fill data center capacity beyond its two largest customers, Microsoft and OpenAI [3] Company Developments - CoreWeave operates AI data centers in the U.S. and Europe, providing access to Nvidia's GPUs, which are essential for training and running large AI models [2] - The company previously entered into a five-year contract with OpenAI worth $11.9 billion, which includes providing cloud computing capacity [3] - An additional agreement with OpenAI commits up to $4 billion through April 2029, further enhancing CoreWeave's revenue stability [4] Financial Performance - In August, CoreWeave reported a significant increase in demand for its cloud services in Q2, driven by the rapid adoption of AI tools [4] - However, the company's operating expenses surged nearly fourfold to $1.19 billion, indicating financial strain due to rapid revenue growth [4]