Meta Platforms is deepening its CoreWeave partnership with a fresh $21 billion deal for additional cloud computing capacity, as it rushes to catch up with rivals in the high-stakes artificial intelligence race after an underwhelming AI model release last year.

The new agreement, which runs until December 2032, complements a comparable $14.2 billion contract signed in September, the company announced on Thursday.

Meta's shares rose by 2.4 percent in morning trading, whereas CoreWeave's shares fell by 3.4 percent.

Meta has quickly increased compute capacity to support the creation and implementation of its large language models, benefiting firms like CoreWeave, which offers clients hardware and cloud services.

Strong connections with Nvidia have positioned CoreWeave as a crucial provider of the specialized AI chips that major tech firms are rushing to acquire.

Thursday's agreement allows Meta to utilize the early deployments of Nvidia's upcoming Vera Rubin chips, which are twice as quick as the existing Blackwell platform.

CoreWeave CEO Michael Intrator states that this is another instance in which top companies select CoreWeave's AI cloud for their most challenging workloads.

The parent company of Facebook intends to invest up to $135 billion in its AI expansion this year, as Silicon Valley intensifies its expensive quest for artificial general intelligence, a conceptual milestone where machines might equal human cognitive abilities.

Also Read: WAVES Summit 2025: Paving Way for Tech Pluralism

The social media firm presented Muse Spark, the inaugural AI model from Meta Superintelligence Labs, a high-cost group it formed last year following the underwhelming results of its Llama 4 model.

Also Read: 5 Budget-Friendly Water Purifiers for this Monsoon

CoreWeave and Meta began their partnership in 2023. Although Microsoft represented approximately 67 percent of CoreWeave's revenue last year, CoreWeave states that Meta is now one of its biggest clients.

Also Read: AI & Tech: Visionary Pre-Budget Insights from Industry Leaders

In another regulatory document submitted, CoreWeave announced it intends to sell bonds worth $1.25 billion and convertible bonds worth $3 billion.