Nvidia Invests $2 Billion in CoreWeave to Boost Global AI Capacity
Nvidia has announced a significant $2 billion investment in CoreWeave, an AI infrastructure provider, aimed at accelerating the development of AI data centers. This investment deepens an existing partnership between the two companies, with the strategic goal of increasing global AI capacity and supporting CoreWeave's initiative to develop 5 gigawatts of AI factories by 2030.
This investment expands an existing partnership between the two companies, with the goal of increasing global AI capacity and supporting CoreWeave's strategic initiative to develop 5 gigawatts of AI factories by 2030.
CoreWeave's Role in AI Infrastructure
CoreWeave operates as a crucial AI infrastructure provider, granting customers access to its extensive fleet of Nvidia Graphics Processing Units (GPUs). These GPUs are essential for powering complex AI projects for a diverse range of clients, including industry giants such as Meta Platforms, OpenAI, and Microsoft.
The service offers an attractive solution for entities seeking robust AI infrastructure without the substantial costs and time associated with building proprietary systems. CoreWeave has reported impressive triple-digit revenue growth. As of the end of the third quarter of 2025, the company held a substantial revenue backlog of approximately $56 billion, a significant increase from $15 billion a year prior, largely driven by contracts with major clients like Meta Platforms and OpenAI.
Deepening Partnership: Nvidia's $2 Billion Investment
On January 26, Nvidia and CoreWeave formally announced the expansion of their relationship. Nvidia, which already held approximately 7% of CoreWeave as of last year, made a new investment of $2 billion in CoreWeave's Class A common stock. The transaction was executed at a price of $87.20 per share.
This new capital injection complements Nvidia's existing commitment of $6.3 billion to purchase any unsold data center capacity from CoreWeave through April 2032. The $2 billion investment is specifically earmarked to enable CoreWeave to accelerate its ambitious initiative to develop over 5 gigawatts of AI factories by 2030.
According to a CoreWeave spokesperson, the proceeds from Nvidia's investment will be allocated primarily to research and development, workforce improvement, and other data center-related expenses, rather than for the direct purchase of Nvidia hardware.
CoreWeave intends to continue building its AI infrastructure powered by Nvidia's advanced data center chip systems, including future Vera Rubin offerings. This financial support is also anticipated to be instrumental in assisting CoreWeave in acquiring land for new AI data centers and securing the necessary electricity to power these facilities.
Strategic Vision and Future Goals
Beyond the financial capital, Nvidia is also committed to enhancing CoreWeave's software suite. This collaborative effort aims to strategically position CoreWeave as a more comprehensive AI solutions provider. This expanded role will allow CoreWeave to offer customers capabilities for building, deploying, and scaling AI solutions, moving beyond mere hardware rental. The partnership is further expected to enable CoreWeave to convert its substantial revenue backlog into actual revenue more rapidly, capitalizing on the high demand for AI infrastructure.
CoreWeave's Market Trajectory
Following its initial public offering (IPO) in March, CoreWeave's stock initially soared over 300% before experiencing a subsequent decline. This previous dip was attributed to investor apprehensions concerning the company's potential debt levels, the impact of any slowdown in AI spending on profitability and debt obligations, and broader market speculation about an AI stock bubble.
Despite these past concerns, CoreWeave's stock has demonstrated a strong recovery, climbing 172% since its IPO and gaining over 50% since the beginning of the current year. The company's future stock performance remains intricately linked to sustained AI spending across the industry.