Nvidia has invested $2 billion in CoreWeave, deepening its partnership with the AI infrastructure provider and becoming its second-largest shareholder. The move is aimed at rapidly expanding data center capacity across the United States as demand for AI computing continues to surge.The announcement, made Monday, pushed CoreWeave’s shares up about 9% in premarket trading.
CoreWeave is part of a growing group of so-called “neocloud” companies that supply the specialized hardware and cloud capacity needed to build, run, and deploy artificial intelligence applications. Demand for these services has climbed sharply in recent years as enterprises increasingly adopt AI technologies.
Nvidia’s latest investment will help CoreWeave accelerate the acquisition of land and power needed for new data centers. The company is targeting more than 5 gigawatts of AI data center capacity by 2030.
According to the companies, Nvidia is purchasing shares at $87.20 each, adding roughly 23 million shares and nearly doubling its ownership stake. Nvidia previously held a 6.3% stake, or about 24.3 million shares, making it CoreWeave’s third-largest shareholder.
The investment comes as Nvidia faces increased scrutiny for channeling billions of dollars into AI companies, including OpenAI and cloud infrastructure providers, prompting some investor concerns around potential circular financing. A CoreWeave spokesperson told Reuters that the new funding will not be used to buy Nvidia processors, but instead will support data center expansion, research and development, and workforce growth.
CoreWeave, which originally operated as a cryptocurrency miner, has successfully pivoted to the AI sector by repurposing its infrastructure to lease Nvidia GPUs to technology and AI firms.
“Nvidia is the leading and most requested computing platform at every phase of AI,” said CoreWeave CEO Michael Intrator. “This expanded collaboration underscores the strength of demand we are seeing across our customer base.”
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