Nvidia-Backed CoreWeave Shares Surge on $14.2B Meta Platforms Deal

CoreWeave shares skyrocketed 14% following a landmark agreement with Meta Platforms worth up to $14.2 billion. The cloud computing provider, backed by Nvidia, will supply AI infrastructure to Meta through 2031, with options for expansion. This marks CoreWeave's latest multibillion-dollar contract as demand for AI computing capacity reaches fever pitch.

The deal underscores CoreWeave's emergence as critical infrastructure for AI development. Despite reporting wider-than-expected losses last month, the company's stock has tripled since its March IPO. Meta's commitment signals enduring confidence in CoreWeave's ability to support large-scale AI projects.

Investors are rewarding AI infrastructure plays as the sector matures beyond chip manufacturers. CoreWeave represents a new avenue for capitalizing on the AI boom, with its specialized cloud services becoming increasingly vital for tech giants scaling their artificial intelligence capabilities.