CoreWeave Just Signed a $21 Billion Deal With Meta. Here's Why This Stock Might Finally Be Turning the Corner.
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CoreWeave has signed a $21 billion deal with Meta to provide AI cloud capacity through 2032, potentially turning the company's fortunes around. The deal, along with another with Anthropic, suggests CoreWeave's ecosystem role is becoming structural.
CoreWeave, an AI data center owner/operator, has announced a $21 billion deal with Meta to provide AI cloud capacity through 2032, expanding a previous $14 billion agreement. The company reported $5.1 billion in revenue last year, but a net loss of $1.2 billion due to heavy AI infrastructure spending. Following the Meta deal, AI outfit Anthropic also signed a multi-year agreement with CoreWeave, though the monetary details were not disclosed. Analysts expect CoreWeave's revenue to more than double this year and reach $34 billion by 2028, potentially pushing the company into profitability. Despite the stock being expensive and the company taking on $1.75 billion in debt, recent announcements suggest CoreWeave's ecosystem role is becoming structural. The deals indicate a turning point for CoreWeave as the AI industry begins to see returns on investments made in AI infrastructure.
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