Meta’s Big Bet on CoreWeave
CoreWeave stock surged Tuesday after reports it struck a $14.2 billion contract with Meta Platforms (META). The deal will give Meta access to Nvidia’s GB300 server racks, each containing 72 Blackwell AI GPUs.
CoreWeave CEO Michael Intrator told Bloomberg: “They loved our infrastructure in earlier contracts and came back for more.”
The deal underscores Meta’s torrid spending on AI infrastructure, which includes a 4M-square-foot Louisiana data center and a capex forecast of $66B–$72B for 2025.
Riding the AI Investment Wave
The Meta contract comes just one week after CoreWeave signed a $6.5B deal with OpenAI, further cementing its role in powering the AI gold rush.
- Microsoft accounted for ~70% of CoreWeave’s revenue last quarter, making diversification a key priority.
- Analysts called the Meta deal a “positive surprise” and an indicator that demand for high-end AI compute remains “limitless.”
- Citi estimates AI capex will hit $2.8 trillion from 2025–2029 as Big Tech scrambles for GPU capacity.
Other mega-deals include:
- Nvidia’s $100B commitment to OpenAI.
- OpenAI’s reported $300B contract with Oracle (ORCL).
Risks Beneath the Rally
While shares are up 260% in 2025, CoreWeave’s trajectory hasn’t been smooth:
- The stock remains below June highs of $183.
- September saw a sharp dip as insiders sold shares.
- Its March IPO was rocky, testing investor faith in the “AI trade.”
Key risks include:
- Debt at high interest rates, straining operating income.
- A concentrated customer base — many of whom are building their own data centers.
- Fears that once Big Tech controls its own infrastructure, CoreWeave’s services may be less critical.
WSA Take
CoreWeave’s $14B Meta deal highlights the insatiable demand for AI compute — and how Nvidia-backed data centers are becoming the linchpin of Big Tech’s ambitions.
But the stock remains a lightning rod for debate. On one side: believers who see CoreWeave as an essential bridge in the AI buildout. On the other: skeptics warning that once hyperscalers scale up, CoreWeave’s risky model and debt-heavy balance sheet could catch up.
For now, the AI arms race is writing CoreWeave’s story — and investors are betting that scale comes before sustainability.
If you missed our coverage of S&P 500 and Nasdaq climbing amid shutdown risks, it’s another reminder of how macro policy and AI infrastructure spending are driving market momentum. For more, head to the Wall Street Access homepage.
Disclaimer
Wall Street Access does not work with or receive compensation from any public companies mentioned. Content is for educational and entertainment purposes only.
