Facebook developer Meta Platforms has inked a $14.2 billion deal with CoreWeave (CRWV), the Nvidia-backed (NVDA) AI data center operator. The latter will provide Meta access to Nvidia’s GB300 server racks, which contain 72 of the chipmaker’s Blackwell AI GPUs. Following the Bloomberg report of the deal, shares in CRWV shot up over 14%.
“They loved our infrastructure in earlier contracts and came back for more,” CoreWeave CEO Michael Intrator told Bloomberg in an interview. While shares in CoreWeave were higher on Monday, META stock was down over 1% and is down 3.2% in the last week. Wall Street likely viewed the new $14B deal with caution, as META has spent feverishly in the past year on AI investing and advancements. The company raised its 2025 capital expenditure guidance to a range between $66 billion and $72 billion in its most recent quarterly financial report.
CoreWeave has been a rising player in AI. After going public in March, its rough IPO steered some investors away. However, this endorsement/investment from Meta Platforms is a big one that is fueling interest in CRWV shares. CoreWeave is up roughly 260% for the year but remains below its high of $183 in June. The stock plunged in value in early September after insiders sold off shares.
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Outside of CoreWeave, Meta is also reportedly acquiring the chip startup Rivos, a source familiar with the matter told Reuters on Tuesday. Rivos, a California-based startup backed by Intel CEO Lip-Bu Tan, is focused on designing chips based on the RISC-V architecture. The terms of the deal were unclear, according to the source; however, it caps off Meta’s strong existing relationship with the chip designer. Rivos was seeking new funding at an over $2 billion valuation, but the acquisition price remains unknown at press time.
Out of 28 analysts surveyed by CNN, 46% each suggest buying or holding CRWV stock, while the remaining 8% opt to sell shares.