Shares of AI cloud infrastructure provider CoreWeave moved higher in premarket trading Thursday after the company disclosed a significant expansion of its partnership with technology giant Meta Platforms. The new agreement commits Meta to approximately $21 billion in spending for AI cloud capacity, extending the arrangement through the end of 2032.
The announcement follows closely on the heels of major financing activities by CoreWeave. Last week, the company secured an $8.5 billion delayed-draw term loan facility. Concurrently with the Meta deal news, CoreWeave revealed plans to issue $1.25 billion in senior notes, highlighting the substantial capital required to fund the aggressive build-out of AI infrastructure.
Under the expanded pact, Meta will leverage CoreWeave's capacity to ramp up its AI inference operations, which involve processing live user requests with trained models. The agreement also incorporates an option from a prior contract and is expected to include early deployments of Nvidia's upcoming Vera Rubin computing platform.
CoreWeave's financial metrics illustrate its rapid scaling. The company reported revenue of $5.13 billion for the 2025 fiscal year, a steep increase from $1.92 billion in the prior year. As of December 2025, CoreWeave's backlog—representing contracted business not yet recognized as revenue—stood at $66.8 billion. The firm operates over 850 megawatts of live power capacity across 43 data centers globally.
"This expansion is another example of industry leaders turning to CoreWeave for their most demanding workloads," stated Chief Executive Officer Michael Intrator. Earlier this year, Chief Financial Officer Nitin Agrawal pointed to the massive backlog as providing "exceptional visibility" for the company's growth trajectory into 2026 and beyond.
The company's strategy has enabled it to compete in a sector long dominated by cloud hyperscalers like Microsoft and Alphabet's Google. CoreWeave's value proposition centers on delivering high-performance Nvidia GPU clusters quickly to AI developers and enterprise clients, bypassing typical cloud queue delays.
However, significant execution risks remain. CoreWeave only converts its backlog into revenue as new data centers and equipment come online according to schedule. The company anticipates capital expenditures between $30 billion and $35 billion in 2026, more than double the $14.9 billion spent in the previous year. In 2025, interest expense climbed to $1.23 billion, while its net loss deepened to $1.17 billion.
Analyst perspectives have been mixed. Commentary in recent days has questioned whether the stock is fully valued after a 62.4% surge over the past year. Some outlets have highlighted improving operating trends, while others focus on concerns about debt levels, cash burn, and margin pressure. D.A. Davidson analyst Alexander Platt noted in February that CoreWeave seemed to be "punished" by investors regardless of its spending pace, though he acknowledged that accelerating capacity build-out is a clear positive.
The expanded Meta deal signals that major technology firms remain willing to make long-term commitments for AI infrastructure. Yet, for CoreWeave, translating these commitments into sustainable financial performance will hinge on flawless execution, managing high funding costs, and successfully converting pledged capacity into recognized revenue.
