Meta commits to spending additional $21 billion with CoreWeave as AI costs keep rising

Meta has announced a significant commitment of an additional $21 billion to enhance its AI cloud infrastructure through CoreWeave. This new investment supplements a previous agreement worth $14.2 billion, reflecting the social media giant's ongoing dedication to artificial intelligence development. The updated arrangement, revealed on Thursday, spans from 2027 to 2032, while the earlier contract extends through 2031. CoreWeave's data centers are equipped with a vast array of Nvidia graphics processing units, essential for supporting the advanced AI models that companies like Meta are eager to develop. As the demand for AI infrastructure grows, even tech giants are looking to external partners like CoreWeave, which also caters to other industry leaders such as Google, Microsoft, and OpenAI. In a recent earnings report, Meta outlined plans to invest between $115 billion and $135 billion in capital expenditures this year — a figure that surpasses Wall Street’s expectations and is nearly double what it allocated in 2025. While Meta's advertising revenue has seen a boost due to its AI focus, the company faces stiff competition in the AI space, which is currently led by firms such as OpenAI, Anthropic, and Google. Meta has established a dedicated Superintelligence Labs team tasked with developing cutting-edge AI models. Recently, they unveiled their latest model, Muse Spark. CoreWeave CEO Mike Intrator highlighted that Meta’s need for high-quality infrastructure has led them to continue relying on his company, despite their capability to build their own facilities. A spokesperson for Meta emphasized that the partnership with CoreWeave is integral to their strategic approach to infrastructure, aimed at fulfilling their ambitious AI objectives. This collaboration is also a strategic move for CoreWeave, as it seeks to reduce its reliance on Microsoft, which currently accounts for a significant portion of its revenue. Following a public debut last year, CoreWeave reported $21 billion in debt by the end of 2025, and in March secured an additional $8.5 billion to expand its infrastructure in line with new contracts. The company’s stock has seen a 24% increase this year, while the S&P 500 has experienced a slight decline. Meta's stock has dipped about 7%, despite a rally following the recent AI model announcement. Intrator anticipates that the partnership with Meta will deepen, even as the company builds more data centers. 'They’ll continue to develop their own capabilities, but they will also keep working with us,' he noted, pointing to the inherent risks of going solo in this competitive landscape.