CoreWeave (CRWV) shares surged more than 14% on Tuesday after reports that the Nvidia-backed AI data center operator secured a $14.2 billion partnership with Meta. The agreement positions CoreWeave as a key supplier of high-powered GPU infrastructure to support Meta’s massive artificial intelligence buildout.
The deal comes at a pivotal moment for both companies: Meta is aggressively scaling its AI capabilities with tens of billions in capital spending, while CoreWeave is working to diversify its customer base and prove staying power in a rapidly shifting AI infrastructure market.
Meta Bets Big on CoreWeave
Under the agreement, CoreWeave will provide Meta access to Nvidia’s GB300 server racks, each loaded with 72 Blackwell GPUs, some of the most powerful AI chips available. CEO Michael Intrator said Meta “came back for more” after earlier contracts proved successful, highlighting repeat demand as a sign of reliability.
Meta has been spending at an unprecedented pace on AI infrastructure, including a 4 million-square-foot data center in Louisiana. The company recently raised its 2025 capex forecast to as much as $72 billion. This partnership with CoreWeave signals Meta’s urgency in securing GPU supply to maintain an edge in AI-driven services across its platforms.
Diversifying Beyond Microsoft
For CoreWeave, the deal is another step in reducing its dependence on Microsoft, which previously accounted for about 70% of revenue. Just last week, CoreWeave announced a $6.5 billion agreement with OpenAI, reinforcing its strategy of broadening its customer base across Big Tech.
Analysts view this as a critical pivot. A customer concentration risk has been one of the biggest knocks against the company since its March IPO. By adding Meta and OpenAI to the roster, CoreWeave is signaling that hyperscale demand for AI infrastructure is strong enough to sustain multiple mega-deals simultaneously.
Limitless AI Demand — but Risks Remain
The surge in CoreWeave’s stock reflects a broader theme: investors see demand for AI compute as effectively “limitless.” With Nvidia chips in short supply, companies like CoreWeave have emerged as stopgap providers for firms racing to expand capacity. Analysts estimate AI capital expenditures could reach $2.8 trillion between 2025 and 2029, underscoring the scale of the opportunity.
Still, CoreWeave’s fundamentals remain a point of debate. Critics warn that the company is heavily indebted, with operating income under pressure. Its business model is vulnerable if Big Tech customers eventually complete their own data centers and shift workloads in-house. Recent insider selling also spooked investors earlier this month, raising questions about long-term confidence in the stock.
Looking Ahead
CoreWeave shares have now gained more than 260% in 2025, though they remain below June’s highs above $180. The Meta deal adds momentum to the narrative that CoreWeave is establishing itself as a central player in AI’s infrastructure race. The challenge will be sustaining growth once today’s extraordinary demand levels normalize. For now, with back-to-back multi-billion-dollar partnerships and a deepening role in Nvidia’s ecosystem, CoreWeave looks poised to ride the wave of historic AI investment through the end of the decade.
