CoreWeave Inc shares rose 14% to $140.05 in early trading on Tuesday after the company disclosed a significant expansion of its cloud services relationship with Meta Platforms Inc (NASDAQ:META).
The new order reinforces the position of the company as a key player in the rapidly expanding AI infrastructure market.
In a regulatory filing, CoreWeave said Meta has committed to pay up to $14.2 billion through December 14, 2031, under a new order form added to an existing master services agreement signed in late 2023.
The agreement allows Meta to access CoreWeave’s cloud computing capacity via reserved capacity orders and may be further expanded through 2032.
“As a result, the company has determined that the MSA is a material agreement within the meaning of Item 1.01 of Form 8-K,” the filing stated.
The agreement includes standard terms covering termination, representations, indemnities, and limitations on liability.