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CoreWeave jumps after partnership to deliver AI cloud services to U.S. agencies
CoreWeave shares rose 21.5% intraday on July 30 after the company said it will provide AI cloud services at mission scale to federal agencies via a Leidos partnership.
CoreWeave shares rose 21.5% intraday on July 30 after the AI-focused cloud provider announced a partnership with Leidos Holdings to deliver AI cloud services to United States federal agencies.
The companies said the effort is designed to help agencies deploy and operate AI at mission scale, and that it extends CoreWeave's reach to requirements tied to the U.S. Intelligence Community and the Department of Defense.
According to Yahoo Finance, the deal also broadens CoreWeave's customer base by adding government work, which the outlet notes can bring more stability and diversify revenue tied to top customers.
The article also flags a related risk in the AI cloud market, noting that Meta Platforms is reportedly entering the neocloud business, while CoreWeave continues to face investor concerns about heavy spending and lack of profitability.