Nvidia ploughs another USD2b into CoreWeave for AI factory partnership
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The news: AI chipmaker Nvidia has invested an additional USD2 billion ($2.9 billion) into AI infrastructure provider CoreWeave, to accelerate the buildout of more than 5 gigawatts of AI factories by 2030.
The numbers: Nvidia purchased CoreWeave Class A common stock at USD87.20 per share, the companies said in a statement on Monday.
Shares in CoreWeave were up over 9% at 9:15am ET (1:15am AEDT Tuesday) in premarket trading, while Nvidia had slipped 0.4%.
The context: The companies said that they will build new AI factories on Nvidia’s computing-platform technology, developed and operated by CoreWeave, with a goal of 5 gigawatts of capacity by 2030. The companies plans to leverage Nvidia’s financial strength to accelerate CoreWeave’s procurement of land, power and shell to build the factories.
Nvidia said that its investment reflects its confidence in CoreWeave’s business, team and growth strategy as a cloud platform built on Nvidia infrastructure.
The news expands an agreement inked between the companies where Nvidia agreed to buy cloud services from CoreWeave through 2032, in a deal valued at USD6.3 billion.
What they said: “AI is entering its next frontier and driving the largest infrastructure buildout in human history,” said Jensen Huang, founder and CEO of NVIDIA. “CoreWeave’s deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry. Together, we’re racing to meet extraordinary demand for NVIDIA AI factories—the foundation of the AI industrial revolution.”
