CoreWeave (CRWV) has signed a $14.2 billion U.S. deal to supply Meta Platforms (META) with massive amounts of computing power.
The deal runs through December 2031 with an option to extend it through 2032, CoreWeave announced.
News of the arrangement with Meta Platforms sent CoreWeave’s stock up 12% on Sept. 30.
CoreWeave’s business involves building data centres that are stocked with advanced artificial intelligence (AI) microchips and then renting out the facilities to companies such as Meta.
The new deal with Meta Platforms helps further diversify CoreWeave’s business away from Microsoft (MSFT), which is its largest customer.
Microsoft currently accounts for 71% of CoreWeave’s revenue. The arrangement with Meta Platforms comes a week after a similar deal was struck with privately held OpenAI.
For its part, Meta Platforms is spending aggressively on AI infrastructure, pledging to allocate $600 billion U.S. over the next three years.
In April, Meta said its capital expenditures may total as much as $72 billion U.S. this year alone, with a big focus on the data centres that are used to train and run AI models and applications.
CoreWeave’s stock has more than tripled in value since its initial public offering (IPO) in March of this year. The company’s share price is currently at $136.85 U.S.
META stock is up 23% this year and trading at $734.38 U.S. per share.
