Nvidia has closed a deal to invest $2 billion in cloud computing provider CoreWeave, emphasising how the leading AI chip manufacturer is using its AI profits to support major customers.
The collaboration aims to speed up the construction of specialised data centres, dubbed “AI factories” by Nvidia that the company sees as central to the AI industrial revolution.
Chief executive of Nvidia Jensen Huang stated, “CoreWeave’s deep AI factory expertise, platform software and unmatched execution velocity are recognised across the industry.”
“Together, we’re racing to meet extraordinary demand for Nvidia AI factories — the foundation of the AI industrial revolution,” Jensen added.
This latest investment comes after Nvidia’s initial stake in CoreWeave in 2023 and comes as the company continues its multibillion-dollar strategy of backing key AI customers.
CoreWeave’s stock rose as much as 10 percent in pre-market trading to $101.80 following the major announcement.
Under the agreement, CoreWeave will get access to Nvidia’s newest “Rubin” GPUs and will provide Nvidia’s Vera CPUs on a standalone basis for the first time, heading to an intensified rivalry with Intel and AMD in the server CPU market.
The agreement further includes a commitment for Nvidia to buy nearly $6.3 billion in cloud services from CoreWeave through 2032, offering a backstop for unsold capacity.
CoreWeave’s stock has been a barometer of investor excitement for AI, reflecting both rapid growth and market volatility.
This significant move strengthened Nvidia’s position in the rapidly diversifying AI infrastructure market, even as rivals such as AMD, Google, and Broadcom develop their own AI chips.
