Meta Secures $21B CoreWeave Cloud Deal as Muse Spark Model Boosts Market Cap
Meta expanded its AI cloud infrastructure partnership with CoreWeave to a $21 billion commitment, boosting capacity for its advanced AI workloads. The unveiling of its Muse Spark multimodal reasoning model drove a 6.5% stock rally, adding roughly $111 billion to market capitalization and spurring raised price targets up to $850.
1. CoreWeave Infrastructure Expansion
Meta agreed to increase its AI cloud infrastructure deal with CoreWeave to $21 billion, securing dedicated high-performance GPUs and network capacity to support large-scale AI training and inference workloads across its operations.
2. Muse Spark Model Unveiling
The launch of Muse Spark, a native multimodal model processing text and images simultaneously, powered the Meta AI app and website and contributed to a 6.5% share price gain, translating into a roughly $111 billion boost in market capitalization.
3. Analyst Upgrades and Price Targets
KeyBanc maintained an Overweight rating and set a $760 target, citing platform stickiness and a 20%+ medium-term growth algorithm, while Citi reiterated a Buy rating with an $850 target, highlighting improved visibility into AI strategy and ad innovation.
4. Cross-Platform Rollout Plans
Meta plans to deploy Muse Spark across WhatsApp, Instagram, Facebook and Ray-Ban AI glasses in the coming weeks, aiming to drive user engagement and open new AI-powered use cases for consumers and advertisers.