(Reuters) -CoreWeave said it has signed a $14 billion agreement with Meta to supply computing power, the latest multi-billion dollar deal as businesses ramp up infrastructure to meet the demand for artificial
intelligence applications.
Shares of CoreWeave surged 10% in premarket trading following the news on Tuesday.
There has been a wave of billion-dollar deals in recent months, with many AI tech firms making investments and supply deals with each other, raising questions about "circular" financing and concerns whether capital will continue to flow.
A surge in valuations of these companies has also sparked worries among investors about whether the AI stock boom is a bubble.
Meta has been one of the biggest proponents of AI, investing tens of billions into data centers across the U.S. and paying athlete salaries to hire top AI software engineers while competition intensifies. The social media firm did not immediately respond to a Reuters request for comment.
As a part of the agreement, CoreWeave will provide the Facebook-parent access to Nvidia's latest GB300 systems, according to a Bloomberg report, citing an interview with the data center operator's CEO Michael Intrator.
The new deal comes a week after CoreWeave signed a third multi-billion dollar cloud expansion deal with OpenAI to aid the ChatGPT maker with its computational needs. CoreWeave executives had then noted sky-high demand from clients.
CoreWeave operates AI data centers in the U.S. and Europe, offering access to Nvidia's graphic processing units, which are highly sought after for training and running large AI models.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Leroy Leo)
