"announced an expanded agreement with OpenAI to power the training of its most advanced next-generation models, reinforcing its position as the essential cloud platform for the most demanding AI workloads. In March 2025, CoreWeave announced an initial agreement with OpenAI with a contract value up to $11.9 billion, followed by an expanded agreement worth up to $4 billion in May 2025. The agreement announced today brings the total contract value with OpenAI up to approximately $22.4 billion."
"According to the investment firm, demand for AI infrastructure far outpaces supply, and that will place an upside bias to revenues for CoreWeave. The analysts added that, meanwhile, a lower interest rate environment will diminish the cost to build the infrastructure for the company."
CoreWeave signed a $14 billion AI infrastructure expansion with Meta that extends an existing 2023 agreement and guarantees cloud computing capacity access. The company also expanded its OpenAI agreement by $6.5 billion, bringing the total OpenAI contract value to approximately $22.4 billion after prior commitments of up to $11.9 billion and $4 billion. Shares rose roughly 13%, or $16.60, following the deal announcements. Evercore ISI initiated coverage with an outperform rating and a $175 price target, citing demand outpacing supply and lower interest rates lowering infrastructure build costs. Wells Fargo upgraded the stock to overweight with a $170 target.
Read at 24/7 Wall St.
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