CoreWeave (NASDAQ: CRWV) and Meta (NASDAQ: META) announced an agreement valued at $21 billion to expand AI infrastructure on Thursday, leading to a jump in share price for both companies in pre-trading hours.
The deal provides Meta with dedicated access to high-end compute resources over several years to support its generative AI projects and expands upon existing cooperation between the two organizations regarding cloud capacity. CRWV is up 4.5% and META 6.5%, per Google Finance data.
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Meta will utilize CoreWeave’s cloud platform to power its large-scale AI workloads and research initiatives. The investment focuses on securing the necessary hardware and data center space for next-generation AI development. CoreWeave serves as a primary provider of Nvidia graphics processing units for AI/HPC.
CoreWeave is well known for its ability to operate GPU services at large scale. The New Jersey-based company was selected by independent research firm SemiAnalysis as the “Platinum” level provider or neocloud services in November.
CoreWeave says the the deal is meant to accelerate deployment of Meta’s Llama models, and other integrated AI features. The agreement is also one of the largest private cloud infrastructure contracts in the sector.
CoreWeave continues to expand its global footprint to meet the demand for specialized AI/HPC environments. The company manages a network of data centers designed specifically for intensive GPU processing. This infrastructure supports the training and inference needs of large technology firms and research labs.