SpaceX and Meta Challenge CoreWeave in AI Computing Market

The AI computing rental market is shifting as CoreWeave Holdings Inc. faces new competition from SpaceX Corp and Meta Platforms Incorporated. While CoreWeave recently reported strong quarterly earnings and a revenue backlog exceeding $100 billion, the company's dominance is being challenged by larger technology firms leveraging their own infrastructure.

SpaceX Corp has pivoted to selling both terrestrial and orbital computing power, securing monthly contracts with Alphabet Inc. and Anthropic PBC totaling $2.2 billion. The aerospace company aims to reach nearly 10GW of computing capacity by the end of 2027 and projects $100 billion in annualized revenue by late 2026. To ensure a steady supply of hardware, SpaceX has promised exclusive use of Nvidia chips for its next-year GPU requirements.

Meta Platforms Incorporated, which currently operates as a client of CoreWeave, also plans to enter the market by selling its own excess computing capacity. CoreWeave continues to benefit from a close relationship with Nvidia Corp, the primary manufacturer of AI chips and a major shareholder in the neocloud provider. In response to high demand, CoreWeave implemented a 25% price hike in July.