Citi analysts on Thursday weighed in on CoreWeave Inc’s (NASDAQ: CRWV) recent agreement with Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB), in which 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.
In speaking with CoreWeave’s management team, the analysts learned the agreement is specifically for GB200s and “will begin to ramp sometime in 2026”.
“Meta now encompasses 1/3 of the revenue backlog and we expect reported third quarter backlog to be upwards of $55 billion now," the Citi analysts wrote in a note to clients.
They added that the agreement significantly reduces CoreWeave's reliance on Microsoft and is in line with their commitment to diversify capacity needs and extend contract duration.
CoreWeave shares rose 1% to $138.41 in early trading on Thursday.