CoreWeave, a leading AI-focused cloud provider, has signed a $14 billion agreement with Meta to supply computing power, marking another major multi-billion-dollar deal as companies expand infrastructure to support artificial intelligence applications. Following the announcement, CoreWeave shares jumped 12% on Tuesday.
The agreement highlights the rush among AI technology developers to secure infrastructure, boosting the valuations of backend service providers like CoreWeave, now valued at $60 billion. While the boom is driving growth, experts have raised concerns about circular financing, where AI firms invest in and make supply deals with each other, sparking discussions about potential market bubbles.
Under the deal, CoreWeave will provide Meta, the parent company of Facebook, with access to Nvidia’s latest GB300 systems. This arrangement also allows CoreWeave to utilise data centre capacity beyond its largest client, Microsoft. Meta has been a major supporter of AI, investing heavily in U.S. data centres and hiring top AI engineers as competition intensifies.
This agreement follows closely after CoreWeave signed another multi-billion-dollar cloud expansion deal with OpenAI to meet the computational demands of ChatGPT. CoreWeave’s U.S. and European AI data centres offer access to Nvidia’s graphics processing units, which are in high demand for training and running large AI models.
Michael Intrator, CoreWeave’s CEO, noted that demand from clients continues to soar, highlighting the critical role of specialised AI infrastructure in supporting the rapid growth of artificial intelligence technologies.
As AI adoption accelerates, partnerships like these show how cloud and data centre providers are becoming essential enablers of next-generation technology while shaping the future of global AI development.
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