CoreWeave has been public for less than year. Meta just handed it a deal worth more than most firms are worth.
The two signed a $21 billion deal on April 9 for AI cloud power through the end of 2032. It adds to a prior $14.2 billion deal, bringing their total to $35 billion.
CoreWeave runs data centers packed with Nvidia's latest chips - the hardware behind AI training. Meta is renting that power instead of building it all in-house.
The new deal uses Nvidia's next-gen Rubin chips, which aren't widely out yet. That tells you Meta is locking in space years before it needs it - a bet that AI demand keeps growing.
$35 billion from one buyer is a strong start. But it's also a risk. If Meta ever pulls back, CoreWeave's sales take a direct hit.
Meta shares rose about 3% on the news. CoreWeave gained roughly 4%.
Meta's AI spending is now in the tens of billions per year. The big question is when that spending starts showing up in sales. Until it does, deals like this are a bet on the future - and a pricey one.
