Meta Amplifies AI Partnership with CoreWeave to $21 Billion
Meta Platforms has announced a colossal $21 billion expansion of its AI infrastructure partnership with CoreWeave. This move secures cloud computing capacity through December 2032, as the social media titan accelerates its artificial intelligence ambitions.
This new agreement builds on a previous $14.2 billion deal announced in September, bringing Meta’s total commitment to CoreWeave to approximately $35 billion. The expanded contract will provide dedicated AI cloud capacity across multiple data centers, including early deployments of NVIDIA’s next-generation Vera Rubin platform designed for advanced AI workloads.
Following the announcement, CoreWeave shares rose 11%. The deal helps the AI cloud infrastructure provider diversify beyond its heavy reliance on Microsoft, which represented 62% of its 2024 revenue. With the Meta expansion, no single customer will now represent more than 35% of CoreWeave’s total sales, according to CEO Michael Intrator.
The agreement underscores the intensifying race among tech giants to secure computing power for AI development. Meta has outlined plans to spend more than $100 billion on AI infrastructure this year as it works to catch up with rivals in developing more powerful AI models. The CoreWeave partnership allows Meta to rapidly scale its AI inference capacity without building all infrastructure in-house.
To finance the infrastructure buildout, CoreWeave announced it is raising $1.75 billion in high-yield bonds and $3 billion in convertible debt, adding to an $8.5 billion credit facility closed earlier in April.
Source: Bloomberg