Meta commits to spending additional $21 billion with CoreWeave

Meta Commits to spend another $21 billion on AI cloud infrastructure CoreWeaveThis amount comes on top of a $14.2 billion preliminary deal as the social media company continues to increase its investments in artificial intelligence.

CoreWeave also said Thursday it would raise $3 billion. fresh debt. Shares remained largely flat.

Shares of Facebook parent company gained nearly 2%.

The new agreement announced Thursday will be valid from 2027 to 2032. The previous agreement, announced in September, will be valid until 2031.

CoreWeave’s data centers are filled with hundreds of thousands of data Nvidia Graphics processing units that can host AI models offer a key piece of infrastructure that hyperscalers need to rapidly expand to meet what they describe as insatiable demand. While Meta and his colleagues build their own facilities, they also need the capacity of companies like CoreWeave that provide services. Google, microsoftt, OpenAI et al.

In March, Meta announced that it would spend $10 billion on a data center in Texas.

“Of course they can buy compute,” CoreWeave CEO Mike Intrator told CNBC in an interview. “But for some reason, all these people who can buy computers also feel the need to buy it from us because of the quality of the product we offer.”

In Meta’s latest earnings report, the company said it plans to make a profit of $115 billion to $135 billion on capital spending this year, above Wall Street’s forecasts and nearly twice the amount it spent on capex in 2025.

While Meta’s core advertising business has benefited from its focus on AI, the company is currently struggling to gain traction in a world of AI models dominated by OpenAI, Anthropic and Google. Meta has spent lavishly to create a Super Intelligence Labs group that develops advanced AI models, and on Wednesday it announced a new model called Muse Spark.

Meta has been partnering with CoreWeave since 2023, and Intrator said his company’s infrastructure allows Meta to better leverage all the AI ​​capabilities it has acquired.

“They recruited people from different people in the space who had used the infrastructure and came back to us,” Intrator said.

The CoreWeave deal is “part of our portfolio-based approach to infrastructure as we invest in capacity for our AI ambitions,” a Meta spokesperson said in an emailed statement.

New job will help CoreWeave further diversify MicrosoftThis represented 62% of 2024 revenue. Intrator said no single customer will now represent more than 35% of total sales.

CoreWeave, which went public last year, held $21 billion in debt on its balance sheet at the end of 2025 and took out debt in March. 8.5 billion more dollars Adding new contractual infrastructure. The company’s shares have gained 24% so far this year, while the S&P 500 has fallen about 1% over the same period. The commodity fell nearly 7% on Wednesday after rebounding following the new model announcement.

Intrator expects CoreWeave’s Meta relationship to grow further even as parent company Facebook opens more data centers.

“They will continue to do it themselves, but they will also continue to do it with us,” he said. “There’s too much risk not to do it.”

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