CoreWeave Inc. (NASDAQ: CRWV) experienced a significant 13.92% stock price drop on Wednesday, closing at $85.68. The sell-off was triggered by reports that Meta Platforms is exploring a cloud business to sell excess AI computing capacity and host AI models. This news raised concerns that a major CoreWeave customer could eventually become a competitor, impacting specialized AI infrastructure providers.
The market reaction highlighted worries about customer concentration, as investors fear that large AI developers might build their own infrastructure, leading to a more competitive market and potential pressure on CoreWeave's pricing, contract terms, and future growth. Other AI infrastructure companies, such as Nebius, also saw their stocks fall. Despite the downturn, some investors view the sell-off as an overreaction, pointing out the complexity of building enterprise-grade cloud platforms.
CoreWeave maintains strong demand visibility, with a contracted revenue backlog of $99.4 billion and a long-term agreement with Meta that runs through 2032. The company is also aggressively expanding its AI data center capacity, guiding for 2026 capital expenditures of roughly $31 billion to $35 billion, significantly higher than 2025 spending. The company aims to increase active power capacity from over 1 gigawatt at the end of Q
