CoreWeave jumps after expanding its AI compute sales deal with Meta to $21 billion

CoreWeave is popping in premarket trading after announcing it is boosting its deal to offer AI computing capacity to Meta.

The neocloud will now provide approximately $21 billion in AI compute to the social media giant through December 2032.

That increases the size of the agreement by about 50% and the length of the deal by a year when compared to the original pact the two sides inked back in September, which had included an option to expand this commitment — which has been exercised with today’s announcement.

CoreWeave recently closed a financing deal that management billed as the first of its kind, as it was backed by its chips and Meta’s AI compute purchase. This ability to effectively borrow Meta’s superior creditworthiness helped CoreWeave reduce its cost of debt.

Separately, CoreWeave also announced that it intends to issue $3 billion in senior convertible notes due in 2032 and $1.25 billion in senior notes due in 2031 in separate private offerings.

“As spending on AI infrastructure continues to accelerate so does the need for additional debt funding, with both Meta and CoreWeave likely to continue to tap debt markets as their cloud capacity agreement expands,” wrote Bloomberg Intelligence credit analysts Robert Schiffman and Alex Reid.