Key Points
- Nvidia is investing another $2 billion in the AI infrastructure provider CoreWeave.
- The investment will nearly double Nvidia’s stake in the company, making it the second-largest investor.
- The money will help CoreWeave accelerate its plans to build 5 gigawatts of AI data center capacity by 2030.
- CoreWeave is a “neocloud” provider that has seen a surge in demand due to the AI boom.
Nvidia is pouring another $2 billion into the AI infrastructure provider CoreWeave, a move that will nearly double its stake in the fast-growing company. The investment, which was made at a price of $87.20 per share, sent CoreWeave’s stock jumping nearly 10% in premarket trading.
This new cash infusion will help CoreWeave accelerate its ambitious plans to build out a massive network of AI data centers. The company is aiming to have more than 5 gigawatts of data center capacity by 2030, and this money will help it buy the land and secure the power it needs to get there.
CoreWeave is part of a new breed of cloud companies, sometimes called “neoclouds,” that are focused specifically on providing the infrastructure for artificial intelligence. As the demand for AI has exploded, so has the demand for the services that companies like CoreWeave provide.
Nvidia was already a major investor in CoreWeave, holding a 6.3% stake in the company. With this new investment, Nvidia is adding another 23 million shares, which will make it CoreWeave’s second-largest investor.
The deal is a clear sign of the symbiotic relationship between the two companies. Nvidia makes the powerful chips that are the brains of the AI revolution, and CoreWeave builds the data center bodies that house those brains.
By investing heavily in CoreWeave, Nvidia is not only betting on a promising young company, but it’s also helping to create more demand for its own products.
