CoreWeave shares jump after $21 billion deal with Meta

Shares of artificial intelligence cloud computing provider CoreWeave jumped 7% on the premarket on April 9 before slowing slightly. Investors were reacting to the company's announcement of an expanded partnership with Meta Platforms. Under the new deal, Meta will invest an additional approximately $21 billion in CoreWeave's AI cloud infrastructure, according to a company release.

Under the updated agreement, CoreWeave will provide Meta with cloud capacity for artificial intelligence processing from several data centers, partially powered by Nvidia's next-generation Vera Rubin processors. The deal runs through December 2032.

The agreement is based on the existing CoreWeave and Meta agreements, which the companies concluded last year. In particular, it is a continuation of a similar agreement, which they announced in September 2025, for $14.2 billion. It is valid until December 2031, Bloomberg recalls.

The new deal, CoreWeave CEO Mike Intrator explained to CNBC, will help CoreWeave diversify its revenue and reduce its reliance on Microsoft, which accounted for 62% of the company's revenue in 2024. No single CoreWeave customer will now generate more than 35% of its total sales, he noted.

Since the beginning of the year, the securities of CoreWeave, which went public last year, have risen 24%, while the S&P 500 index has fallen about 1% over the same period. Meta shares are down about 7% over the same time. At the April 9 premarket, they are adding 2.12%.

CoreWeave's data centers are filled with hundreds of thousands of Nvidia GPUs capable of serving AI models, a key piece of AI infrastructure that hyperscalers need to rapidly ramp up AI capacity, CNBC explains. Although Meta and its AI competitors are building their own data centers, they still need cloud capacity from companies like CoreWeave, which also serves Google, Microsoft and OpenAI, among others, the channel points out.

"Sure, they [large companies working on AI models] can buy computing resources. But for whatever reason, they all feel the need to buy those resources from us because of the quality of the product we provide," Intrator said in an interview with CNBC.

In 2026, Meta plans capital expenditures of between $115 billion and $135 billion, which is almost twice as much as last year. The company plans to allocate a significant part of these funds to AI. Thus, in March, Meta announced that it would invest $10 billion in the construction of a data center in Texas.

However, despite parent company Facebook opening more of its own data centers, Intrator expects CoreWeave and Meta's collaboration to continue. "They [Meta] will continue to do it [build more cloud capacity for AI] themselves, but they will also continue to do it with us," the CEO said, stressing that "the risk of not doing it is too great."

CoreWeave Meta has partnered with CoreWeave since 2023.

This article was AI-translated and verified by a human editor