Secured a $14 billion AI computing power order from Meta, CoreWeave's stock price surged in response

According to Zhitong Finance APP, CoreWeave (CRWV.US) has signed an agreement to provide computing power worth up to $14.2 billion to Meta Platforms (META.US), highlighting the enormous costs of developing and operating advanced artificial intelligence (AI) models. Following this news, CoreWeave's stock rose over 15% in early trading. CoreWeave CEO Michael Intrator stated, "They praised our infrastructure in previous contracts and hope we can continue to provide services." Under the agreement, CoreWeave will provide the social media giant access to NVIDIA's latest GB300 systems. CoreWeave is one of the emerging cloud service providers that rent out access to advanced AI chips. Its competitors include NEBIUS (NBIS.US) and Nscale Global Holdings. Since its listing in March, CoreWeave's stock price has more than doubled as major tech companies compete to build cutting-edge AI models, significantly driving up computing demand. The deal with Meta helps CoreWeave further diversify its business and reduce its reliance on Microsoft. Microsoft has traditionally been CoreWeave's largest customer, contributing 71% of CoreWeave's revenue as of the June quarter. Last week, CoreWeave reached a multi-billion dollar deal with OpenAI. Intrator remarked, "We were impacted during the IPO due to high customer concentration. This is clearly the right step towards diversification." Meta has become one of the companies investing the most in AI infrastructure. In April of this year, Meta indicated that its total capital expenditures could reach $72 billion, focusing on AI and data centers for training and running models. Emerging cloud service providers primarily rely on debt financing to invest in capital-intensive AI infrastructure. Intrator stated, "As our business continues to expand, we will regularly utilize the debt market for financing." Large cloud service providers have also recently sought debt financing to fund data center construction. Meta raised $29 billion through a financing plan to build a large data center in Louisiana. Last week, Oracle raised $18 billion through bond issuance to build infrastructure for OpenAI