Meta and CoreWeave Expand AI Cloud Partnership with $21 Billion Deal

Meta Platforms has significantly expanded its partnership with CoreWeave through a new $21 billion agreement for additional cloud computing capacity, as the company accelerates efforts to compete in the global artificial intelligence race.

The deal, which runs through December 2032, builds on an earlier $14.2 billion agreement signed in September, further strengthening the relationship between the two companies. Shares of both firms rose following the announcement, reflecting investor confidence in the expanding collaboration.

Scaling Compute for AI Development

Meta has been rapidly increasing its computing infrastructure to support the development and deployment of large language models and next-generation AI systems. The partnership with CoreWeave provides access to high-performance cloud resources and specialized hardware critical for these workloads.

CoreWeave’s close relationship with Nvidia positions it as a key supplier of advanced AI chips. Under the new agreement, Meta will gain access to early deployments of Nvidia’s next-generation Vera Rubin chips, which are expected to deliver significantly higher performance than the current Blackwell platform.

Strategic Push After AI Setbacks

The expanded investment comes as Meta intensifies its AI strategy following a less successful model release last year. The company recently introduced Muse Spark, the first model from its Meta Superintelligence Labs unit, which was established to strengthen its position in advanced AI development.

Meta has indicated plans to spend as much as $135 billion this year on AI infrastructure and development, underscoring the scale of investment required to compete with leading players in the field.

CoreWeave Emerges as Key AI Infrastructure Partner

The deal further elevates CoreWeave’s role in the AI ecosystem. While Microsoft previously accounted for a majority of its revenue, Meta has now become one of its largest customers.

CoreWeave said the agreement reflects growing demand from major technology companies seeking specialized AI cloud platforms capable of handling increasingly complex workloads.

Financing and Expansion Plans

In a separate filing, CoreWeave disclosed plans to raise additional capital through bond offerings, including $1.25 billion in bonds and $3 billion in convertible bonds, to support its expansion.

The company has also projected up to $35 billion in capital expenditure this year, more than doubling its spending from 2025, as it scales infrastructure to meet surging AI demand.