Meta's $35 Billion AI Infrastructure Deal with CoreWeave Doesn’t Stop Stock Decline
CoreWeave, a neocloud infrastructure provider focused on artificial intelligence (AI), has seen its stock fall sharply in recent months amid concerns over aggressive spending and competition. Despite having one of the largest customers—Meta Platforms—with which it signed an expanded $35 billion AI data center agreement through 2032, CoreWeave shares dropped further after reports that Meta may sell excess cloud capacity. The deal with Meta builds on a prior contract worth $14.2 billion from September 2025 and now totals over $35 billion in value by December 2032. However, investors are worried about potential competition if Meta decides to offer its own AI compute services instead of relying solely on CoreWeave. Despite the short-term volatility, analysts remain optimistic due to a global shortage of dedicated AI data centers and strong long-term demand for infrastructure. Bank of America estimates that power demand could outpace capacity additions by 100 gigawatts (GW) by 2030, supporting continued growth in this sector.
Topics: AI infrastructure cloud computing CoreWeave investor sentiment Meta