CoreWeave Jumps 8% Pre-Market on Meta AI Deal, Core Scientific Merger Looms

CoreWeave, an AI-focused cloud computing company, has secured a significant $14.2 billion contract with Meta Platforms to supply Nvidia's latest GB300 systems. This deal represents a diversification of CoreWeave's revenue, moving away from its reliance on Microsoft as its primary customer. Shares in CoreWeave surged over 8% in pre-market trading, reaching $132, a significant increase from its initial public offering price earlier this year. The positive market reception is also supported by favorable analyst coverage, with Evercore ISI initiating coverage with an ‘outperform’ rating and a price target of $175, indicating a potential 43% upside. Furthermore, Core Scientific shareholders are expected to vote on a $9 billion all-stock merger, which would see the bitcoin miner become a subsidiary of CoreWeave. This strategic move highlights the growing interest and investment in AI technologies and their applications within cryptocurrency and blockchain sectors.

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