Social media giant Meta Platforms, Inc. has committed to an additional $21 billion in spending with AI cloud service provider CoreWeave, Inc., supplementing a previous agreement valued at $14.2 billion. The new spending cycle is scheduled from 2027 to 2032. While Meta continues to build its own AI infrastructure, it will also maintain its reliance on CoreWeave, which leases NVIDIA graphics processing units. CoreWeave's Chief Executive Mike Intrator commented in an interview: "They will continue to build their own, but they will also continue to partner with us. The risk of not doing so is simply too great."
Amid ongoing significant investments in artificial intelligence, Meta has pledged to procure an additional $21 billion worth of cloud infrastructure services from CoreWeave, building upon a prior $14.2 billion agreement. The new contract, announced on Thursday, is effective from 2027 through 2032. The previous agreement, disclosed in September, runs until 2031. CoreWeave's data centers are equipped with hundreds of thousands of NVIDIA GPUs that power AI models, providing critical infrastructure for hyperscale tech companies to rapidly expand and meet what they describe as "infinite demand." Despite Meta and its peers constructing their own data centers, they still require computational support from companies like CoreWeave, which also serves Alphabet, Microsoft, and OpenAI. In March of this year, Meta announced plans to invest $10 billion in building a data center in Texas. CoreWeave CEO Mike Intrator stated in an interview with CNBC: "They certainly have the capability to procure computing power themselves. However, for specific reasons, companies with the capacity to build their own infrastructure still choose to purchase from us, largely due to the quality of the product we deliver." In its most recent earnings report, Meta indicated it plans capital expenditures between $115 billion and $135 billion for this year, exceeding Wall Street expectations and nearly doubling its projected capital spend for 2025. Although Meta's core advertising business benefits from its AI strategy, the company is still working to catch up in the large language model arena, currently led by OpenAI, Anthropic, and Alphabet. Meta has invested heavily in establishing advanced AI research labs and on Wednesday released a new model named Muse Spark. Meta's partnership with CoreWeave began in 2023. Intrator noted that his company's infrastructure enables Meta to better leverage the value of the AI talent it has recruited. "They are hiring talent from across the industry. These individuals have experience with various infrastructure providers but ultimately choose to work with us," Intrator said. A Meta spokesperson stated in an email that the agreement with CoreWeave is "part of our diversified infrastructure strategy to support the computational capacity required for our AI vision." This new business will help CoreWeave reduce its reliance on Microsoft and diversify its client base. In 2024, Microsoft accounted for 62% of CoreWeave's revenue. Intrator stated that no single customer is expected to represent more than 35% of total sales going forward. CoreWeave went public last year. Its balance sheet at the end of 2025 showed $21 billion in debt, and the company borrowed an additional $8.5 billion in March to fund new infrastructure supporting the recent contracts. CoreWeave's stock has increased 24% year-to-date, while the S&P 500 index has declined approximately 1% over the same period. Meta's stock rose following the announcement of its new model on Wednesday but remains down about 7% for the year. Intrator anticipates that the partnership with Meta will deepen further, even as the parent company continues to construct new data centers. "They will continue to build their own, but they will also continue to partner with us. The risk of not doing so is simply too great," he said.
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