Nvidia has invested an additional $2 billion in CoreWeave, a cloud and AI infrastructure provider, supporting CoreWeave to increase data center computing capacity to meet the expanding AI market in the future.
After the collaboration deal was announced, CoreWeave's stock surged, closing up 6% on Monday.
Nvidia purchased CoreWeave Class A common shares at $87.20 per share, below the previous Friday's closing price of $92.98. The funding will help CoreWeave accelerate building a 5-gigawatt AI data center by 2030, equivalent to the annual electricity consumption of over 4 million U.S. homes combined.
Mike Intrator, CEO of CoreWeave, said, “This partnership will allow us to expand our network faster, diversify risk by not relying on a single customer, while we increase our data center processing capacity.”
CoreWeave is a cloud infrastructure provider, known as a Neocloud, with most revenue from building and leasing data centers, playing a significant role as AI-related businesses collaborate.
CoreWeave uses massive amounts of Nvidia GPU chips to support AI model training. Nvidia also reported in September to the U.S. SEC that it invested $6.3 billion, with a commitment to purchase remaining unsold production capacity through April 2032.
While many businesses compete in AI, CoreWeave has partnered with other major tech firms, signing a $14.2 billion cloud infrastructure deal with Meta in September, following a previous $22.4 billion agreement with OpenAI.
However, CoreWeave's AI infrastructure provider stock has been volatile, as investors grew cautious about the AI market late last year, compounded by CoreWeave's high debt from investing tens of billions in various deals.
Mike Intrator stated, “In the future, AI will connect to everything, and this technology will generate returns for hundreds of years.”
Sources:CoreWeave,CNBC,BusinessWire
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