Meta Signs $14 Billion Deal with Coreweave

Meta Platforms signed a contract worth up to $14.2 billion with technology company Coreweave to bolster its computing power resources. This will provide the social media company with the infrastructure required to develop and run advanced AI models.

US-based Coreweave confirmed the news in an SEC filing, with the deal running through to 2031 with an option to extend by another year. Describing itself as an AI hyperscaler, the tie-up with Meta follows a $6.5 billion expansion of a deal with OpenAI announced just days ago, bringing its total contract with the ChatGPT operator to $22.4 billion. Coreweave also recently signed a £1.5 billion deal with the UK government.

Its business centres on renting out access to leading AI chips, and it competes with players including Nebius Group and Nscale. The latter last week secured $1.1 billion in funding, with backers including Nvidia and Nokia. Coreweave CEO Michael Intrator said it would supply Meta with Nvidia’s latest GB300 systems as part of the agreement. “They loved our infrastructure in earlier contracts and came back for more,” he said.

For Meta Platforms, the deal underlines the massive cost involved in building out AI infrastructure. CEO Mark Zuckerberg stated in July that the company planned to invest hundreds of billions of dollars in AI computing infrastructure, which includes building colossal data centre clusters.