CoreWeave has quickly become one of the most talked-about companies in the artificial intelligence infrastructure space. The cloud provider, backed by Nvidia, recently drew attention after securing a $14.2 billion agreement with Meta to supply computing capacity through 2031. Investors responded with enthusiasm, sending the company’s stock sharply higher and reinforcing its reputation as a fast-rising player in AI.

Yet not all analysts believe CoreWeave is the most attractive choice in this sector. Some point to a competitor, Nebius, which has signed a 17.4 billion dollar deal with Microsoft, as a potentially stronger long-term opportunity. With both companies competing to provide the backbone of AI computing, investors face a decision about whether the recent excitement around CoreWeave fully reflects its risks, or if Nebius offers a more balanced path forward.

The Rise of CoreWeave: Why It’s Getting So Much Attention

CoreWeave has transformed from a small Ethereum mining operation into a prominent name in cloud computing. Its rapid rise is largely tied to the global race for artificial intelligence infrastructure, where access to high-performance GPUs has become essential. By specializing in GPU-heavy cloud services, the company has carved out a niche that separates it from more traditional providers such as Amazon Web Services or Microsoft Azure.

The company’s profile grew significantly this year when it signed a 14.2 billion dollar deal with Meta to supply cloud capacity through 2031. The agreement is one of the largest in the AI infrastructure sector and highlights Meta’s reliance on CoreWeave to power its expanding AI initiatives. Investors quickly took notice, sending CoreWeave’s shares up by more than 12 percent following the news.

CoreWeave has also secured backing from Nvidia, which agreed to purchase 6.3 billion dollars of unused capacity if the company cannot sell it elsewhere. This arrangement provides a financial safety net while strengthening ties with one of the most important suppliers of AI hardware. Combined with its acquisitions of firms like Weights & Biases, CoreWeave has positioned itself as a central player in the infrastructure that underpins the current AI boom.

Introducing the Rival: Nebius

While CoreWeave has captured headlines, another contender is quietly building momentum. Nebius, a cloud computing company with roots in Europe, is also targeting the growing demand for AI infrastructure. Its strategy focuses on diversifying its customer base and maintaining a more balanced approach to financing, which some analysts argue makes it a stronger long-term bet.

Nebius recently gained credibility with a 17.4 billion dollar agreement with Microsoft, covering the supply of computing power for AI development. The scale of the deal puts it on the same level as CoreWeave in terms of backlog, but without the same degree of concentration in a few major customers. Analysts at D.A. Davidson have highlighted that Nebius could benefit from broader client diversification and a less aggressive debt structure, offering more stability in volatile markets.

The company also holds potential value in non-core assets, such as educational technology platform TripleTen and autonomous vehicle unit Avride. These businesses, if spun off or sold, could provide Nebius with additional capital and strategic flexibility. With a lower valuation relative to its backlog of contracts, Nebius is increasingly seen as the quieter alternative to CoreWeave, one that may carry less downside risk if industry conditions shift.

Side-by-Side Battle: CoreWeave vs Nebius

CoreWeave and Nebius are often compared because both focus on providing the computing backbone needed for artificial intelligence. However, their business structures and market positions present different strengths and risks.

CoreWeave stands out for its high-profile partnerships. Its 14.2 billion dollar Meta contract and a guaranteed 6.3 billion dollar safety-net deal with Nvidia provide immediate revenue visibility. The company also benefits from its acquisitions, such as Weights & Biases, which integrate developer tools directly into its platform. Yet CoreWeave’s reliance on a few major clients leaves it exposed if relationships shift, and its rapid expansion has required heavy borrowing.

Nebius, by comparison, is positioned as a more balanced alternative. Its 17.4 billion dollar contract with Microsoft gives it credibility while spreading risk across a broader customer base. Analysts argue that its valuation is lower relative to its contract pipeline, suggesting more room for upside. Non-core assets such as TripleTen and Avride could also be unlocked for added shareholder value.

For investors, CoreWeave represents aggressive growth with headline contracts, while Nebius offers diversification and a potentially steadier path. The decision ultimately depends on whether one prefers immediate scale or longer-term balance.

FeatureCoreWeaveNebiusMajor contracts & backlog$14.2 b Meta + large OpenAI & Nvidia deals~$17.4 b Microsoft deal (plus potential for expansion)Customer concentrationHigh (few major clients) More diversified across segments (analyst claim)Valuation & upside marginPremium valuation, more baked in expectationsDiscount valuation, more runway for multiple expansionCapital / debt riskStrong capital burn and infrastructure costsPossibly more conservative capital model (per analyst view)Execution & scaleStrong traction, but big betsLess proven at scale but high growth potentialIntegrated assets / optionalityWith Weights & Biases, Core Scientific tie-insPotential noncore value unlock (TripleTen, Avride)Verdict & Forward Outlook

The competition between CoreWeave and Nebius highlights how quickly the AI infrastructure market is evolving. CoreWeave has secured marquee contracts and strong backing from Nvidia, making it an appealing option for investors who are comfortable with rapid expansion and higher risk. Its growth has been remarkable, but the concentration of clients and heavy debt commitments could weigh on its stability if market conditions change.

Nebius, on the other hand, is attracting attention for its more measured approach. Its Microsoft agreement valued at 17.4 billion dollars demonstrates its credibility at scale, while analysts note its broader customer mix and lower valuation may provide a safer entry point. Additional value could also be unlocked through assets outside of its core business.

Both companies are competing in a market expected to expand as AI adoption grows across industries. Investors will need to weigh the immediate scale and visibility of CoreWeave against the relative balance and potential upside of Nebius. In the months ahead, contract execution, financial discipline, and the ability to attract new customers will likely determine which of these rising players becomes the stronger long-term investment.