Meta Platforms on Thursday announced an expanded, long-term agreement with CoreWeave, committing an additional $21 billion through December 2032.
This isn’t their first rodeo. This new deal builds on a previous $14.2 billion arrangement, meaning Meta is now funneling staggering amounts of capital into the specialized “AI Cloud” to keep its competitive edge. While Meta is busy building its own massive data centers, including a $10 billion facility in Indiana, the company clearly realizes it can’t go it alone if it wants to lead the pack in generative AI.
CoreWeave, which rebranded as “The Essential Cloud for AI,” has become the go-to landlord for the high-performance chips needed to train and run models such as Meta’s new Muse Spark. A key part of this new deal involves deploying NVIDIA’s Vera Rubin platform, a next-generation hardware setup designed to handle the most complex AI workloads across multiple locations.
In an interview with CNBC, CoreWeave CEO Michael Intrator noted that even though these giants have the money to build their own systems, they still come to CoreWeave, “Sure, they can buy compute,” Intrator told CNBC. “Yet, for some reason, all these people who can buy compute also feel the need to buy it from us, because of the quality of the product that we deliver.”
A strategic safety net
This is about more than just buying power for Meta; it’s about hedging its bets. A Meta spokesperson explained the move to CNBC, stating the deal is “part of our portfolio-based approach to infrastructure, as we invest in capacity for our AI ambitions.”
This “portfolio” approach is becoming the industry standard. CoreWeave’s dance card is already full of high-profile names. Just last year, the company secured an $11.9 billion contract with OpenAI, a move that Sam Altman called “an important addition to OpenAI’s infrastructure portfolio.”
NVIDIA has also been a massive cheerleader (and investor), pouring $2 billion into CoreWeave earlier this year.
The financial balancing act
While the $21 billion deal sent CoreWeave’s stock jumping as much as 8% in early trading, the company is also navigating a mountain of debt to fund this rapid expansion. To keep the lights on and the chips humming, CoreWeave announced plans for two new debt offerings: $1.25 billion in senior notes and $3 billion in convertible notes.
The Meta deal provides a critical path toward independence for CoreWeave. The company is working hard to diversify its revenue away from Microsoft, which accounted for 62% of its sales in 2024. Under this new Meta agreement, Intrator expects no single customer to represent more than 35% of total sales, CNBC reported.
For more on Meta’s expanding AI ambitions, check out how its smart glasses are raising new privacy concerns as human reviewers analyze user footage.