Meta to invest extra $21bn in CoreWeave amid rising AI expenses

Meta has pledged an additional $21 billion for AI cloud infrastructure from CoreWeave, adding to a previous deal worth $14.2 billion, as the company continues to boost its investments in artificial intelligence (AI).

The new contract, revealed on Thursday, is set to run from 2027 to 2032. The earlier agreement, disclosed in September, is scheduled to go until 2031.

CoreWeave's facilities house hundreds of thousands of Nvidia graphics processing units (GPUs) tailored for AI model deployment, offering a crucial infrastructure for hyperscalers needing to quickly expand to meet what they describe as unending demand. 

Despite Meta and its counterparts developing their own setups, they require additional capabilities from providers like CoreWeave, which also supplies Google, Microsoft, OpenAI, and others.

Earlier this year, Meta indicated its intention to invest $10 billion on a Texas-based data facility.

"Sure, they have the ability to acquire computing power," CoreWeave CEO Mike Intrator shared with CNBC. "Yet, there's a reason why all these entities prefer getting it from us, which lies in the quality we offer."

In the last earnings review, Meta mentioned its intention to allocate between $115 billion and $135 billion this year on capital expenditures, which surpasses Wall Street's forecasts and is nearly double the expenditure recorded in 2025.

Even though Meta's primary advertising operations have gained from the AI boost, the company has struggled to gain a stronghold in the AI model realm, where OpenAI, Anthropic, and Google are leading. 

Meta has invested expansively to form the Superintelligence Labs group focused on developing advanced AI models, and recently unveiled a new model called Muse Spark on Wednesday.

Meta has partnered with CoreWeave since 2023, and Intrator noted that the infrastructure his company offers enhances the utility of Meta's acquired AI talent.

"They brought in people from various areas, individuals experienced with different infrastructures, yet they returned to us," explained Intrator.

A Meta representative highlighted in an emailed statement that the CoreWeave collaboration is "a component of our portfolio-based approach to infrastructure, enhancing our AI capacity."

This new venture will allow CoreWeave to further decrease reliance on Microsoft, which accounted for 62% of its 2024 income. Now, no client will represent over 35% of total sales, according to Intrator.

CoreWeave, which entered the public market last year, ended 2025 with $21 billion in debt, and in March obtained an additional $8.5 billion for new infrastructure aligned with future contracts. 

This year, the company's stock has risen 24%, while the S&P 500 dipped about 1% during the same timeframe. 

Meanwhile, Meta has declined about 7% after witnessing a surge following the model's announcement on Wednesday.