:max_bytes(150000):strip_icc()/GettyImages-2213626542-9612d0050c4d40b0be26bb4abad5a40f.jpg "Why Nvidia-Backed CoreWeave’s Stock Is Soaring Today")
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Key Takeaways
- CoreWeave shares surged Tuesday after the cloud computing company backed by Nvidia struck a new agreement with Meta Platforms valued at up to $14.2 billion.
- The announcement marks the latest in a string of multibillion-dollar deals for CoreWeave to provide infrastructure to support booming AI demand.
CoreWeave (CRWV) shares soared Tuesday after the provider of artificial intelligence data centers backed by AI chip darling (NVDA) said it struck a deal with Meta Platforms (META) valued at up to $14.2 billion.
Shares of CoreWeave were up nearly 14% around $140 in recent trading. They have more than tripled in value since the company went public in March, though they remain well off their highs from June after reporting a wider-than-anticipated loss last month.
The company wrote in a regulatory filing Tuesday that its latest order from Meta will run through December 14, 2031, and that Meta has the option to “materially expand its commitment through 2032 for additional cloud computing capacity.”
In a statement to Investopedia, CoreWeave said it believes the agreement underscores its value as a “trusted backbone for the world’s leading innovators and most ambitious projects.”
Why This Matters for Investors
CoreWeave is part of a cohort of AI-related companies that have seen strong gains since going public recently, pointing both to demand for AI infrastructure and new ways to play the AI trade.
The news comes less than a week after the company announced an expanded agreement with ChatGPT-maker OpenAI for as much as $6.5 billion “to power the training of its most advanced next-generation models.” That’s on top of the $11.9 billion pact the two signed in March, and a $4 billion expansion in May. Earlier this month, CoreWeave also said it signed a $6.3 billion order with Nvidia.
