Meta Cloud Plan Knocks CoreWeave 14% and Nebius 17% as $48 Billion Ties Face New Risk
Updated
Updated · The Motley Fool · Jul 7
Meta Cloud Plan Knocks CoreWeave 14% and Nebius 17% as $48 Billion Ties Face New Risk
3 articles · Updated · The Motley Fool · Jul 7
Summary
July 1 trading erased nearly 14% from CoreWeave and 17% from Nebius after Bloomberg reported Meta is developing a plan to rent out excess cloud capacity; Meta shares rose almost 9%.
The selloff hit harder because Meta is already a major customer: CoreWeave expanded a deal to $21 billion through 2032, while Nebius disclosed commitments totaling $27 billion.
That overlap raises the risk Meta could both reduce future purchases and compete for the same AI cloud customers these neocloud providers target.
Demand still appears stronger than supply: CoreWeave says it is largely sold out for 2026, and Nebius says several customers typically compete for every GPU it brings online.
Broader data-center demand remains steep, with Goldman Sachs projecting U.S. power demand from data centers to rise to 66 gigawatts in 2027 from 31 gigawatts last year.