CoreWeave Extends Hot Streak With Meta's $14 Billion Cloud Deal

CoreWeave Inc. (NASDAQ:CRWV) surged after it disclosed in a regulatory filing that it has entered into a multibillion-dollar agreement with Meta Platforms Inc. (NASDAQ:META) for cloud computing capacity valued at up to $14.2 billion.

According to an 8-K filing with the SEC, the agreement was executed on September 25 under the companies' existing Master Services Agreement, effective as of December 2023.

Meta has committed to payments of approximately $14.2 billion through December 14, 2031, with the option to significantly expand the order through 2032.

Also Read: CoreWeave Expands Agreement With OpenAI To Train Next-Gen Models

CoreWeave will provide reserved capacity orders, subject to delivery and service availability requirements. The agreement includes provisions for termination, indemnification, and limitations of liability.

The company determined that the Master Services Agreement qualifies as a material definitive agreement under SEC rules. It will remain effective until all orders are fulfilled, expired, or terminated in accordance with its terms.

Part Of Larger Growth Push

The new contract builds on CoreWeave's rapid expansion in 2025 as demand for artificial intelligence infrastructure accelerates.

Earlier this year, the company announced a $6.3 billion arrangement with Nvidia (NASDAQ:NVDA) to purchase unused cloud capacity through 2032.

It also expanded its agreement with OpenAI by up to $6.5 billion, in addition to an earlier $11.9 billion commitment.

Since its March IPO, CoreWeave's shares have more than tripled, lifted by contracts with Microsoft (NASDAQ:MSFT), Nvidia, OpenAI, and now Meta. However, trading has been volatile.

In August, insiders sold shares as lock-up restrictions expired, even as institutional investors added positions. Analysts tracked by Benzinga list price forecasts ranging widely, from below current levels to as high as $200 per share, with consensus near $127.

Price Action: CRWV shares were trading higher by 15.20% to $141.14 at last check Tuesday. META was down 1.53%.

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