**CoreWeave and Nebius Group Stocks Decline Following Meta’s Competitive Move**
Shares of AI data center providers CoreWeave (NASDAQ: CRWV) and Nebius Group (NASDAQ: NBIS) plummeted on July 1 after news surfaced that Meta Platforms (NASDAQ: META) plans to enter the neocloud market by renting out its excess cloud computing capacity. CoreWeave experienced a 14% drop, while Nebius fell by 17%. In contrast, Meta’s stock rose nearly 9% in the wake of this announcement, which has raised concerns for the future of these dedicated AI infrastructure firms.
CoreWeave has significant contracts with Meta, including a recently expanded $21 billion deal through December 2032, while Nebius has a $27 billion agreement that includes a commitment for an additional $15 billion in capacity over five years. Despite the immediate stock market reactions, both companies are experiencing high demand for their services, with CoreWeave remaining largely sold out of its 2026 capacity and Nebius noting intense competition for available resources. Goldman Sachs projects that U.S. data center power demand will more than double to 66 gigawatts by 2027, signifying that the market may still support multiple players in this rapidly evolving sector.
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