CoreWeave (CRWV) stock jumped nearly 12% Tuesday after the company said it had inked a $14.2 billion long-term cloud deal with Meta (META).

CoreWeave, an Nvidia-backed (NVDA) AI data center operator, will provide Meta access to Nvidia’s GB300 server racks, according to Bloomberg, which first reported news of the deal. Each of those server racks contains 72 of the chipmaker’s Blackwell AI GPUs (graphics processing units).

“They loved our infrastructure in earlier contracts and came back for more,” CoreWeave CEO Michael Intrator told Bloomberg in an interview.

Meta did not immediately respond to Yahoo Finance’s requests for comment.

Read more about CoreWeave’s stock moves and today’s market action

Meta has been spending at a torrid pace as it invests in AI infrastructure that includes a mammoth 4 million-square-foot data center in Louisiana. The Instagram parent raised its 2025 capital expenditure guidance to a range between $66 billion and $72 billion in its most recent quarterly financial report.

Tuesday’s development comes on the heels of CoreWeave’s $6.5 billion deal with OpenAI (OPAI.PVT), announced last week. The company is working to diversify its customer base away from Microsoft (MSFT), which accounted for roughly 70% of the company’s revenue in its most recent quarter.

“This is clearly a step in the right direction for diversification,” Intrator told Bloomberg.

Hedgeye Risk Management analyst Felix Wang, who holds a short position on CoreWeave, called the deal “a positive surprise.” Tech analyst and Bokeh Capital Partners chief investment officer Kimberly Forrest said the partnership was “a good deal for both” firms and is an indication that current demand for high-end AI chips is “limitless.”

Futurum Group tech analyst David Nicholson was more skeptical of the deal and what it says about the AI chip market. Nicholson said there is an “odd market dynamic” at play, given Meta has chosen to rent data center capacity from CoreWeave rather than buy Nvidia’s chips directly to put in its own data centers.

“It doesn’t make sense that Meta would not prefer to do what it does with all of its other technology, and that is build and manage it on its own,” he said.

CoreWeave’s new partnership with Meta comes amid a flurry of other recent AI deals as Big Tech rushes to add compute capacity in data centers to power their artificial intelligence ambitions. Those deals include Nvidia’s $100 billion OpenAI investment, announced last week, and OpenAI’s reported $300 billion contract with Oracle (ORCL). Citi analysts forecast on Tuesday that AI capital expenditures from 2025 through 2029 would hit $2.8 trillion.