Chipmaking and AI infrastructure firm NVIDIA has invested a total of $2 billion into AI-enabling cloud platform CoreWeave, as per an official announcement on Monday.
The update is part of a broader partnership between the two firms, who are now moving ahead plans to accelerate building AI factories, targeting 5 gigawatts of buildout by 2030. The investment sent CoreWeave’s stock soaring by nearly 10%
At the time of writing, CoreWeave’s stock was trading at $102.78, up by 9.78%. NVIDIA stock was priced at $186.93.
“AI is entering its next frontier and driving the largest infrastructure buildout in human history,” said NVIDIA CEO Jensen Huang.
“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,” he also said.
NVIDIA will be investing at $87.2 per share, representing a discount of 15.16% to the current market price of $102.78. The investment will make NVIDIA the second-largest shareholder of CoreWeave, as per a Reuters report.
“NVIDIA is the leading and most requested computing platform at every phase of AI – from pre-training to post-training – and Blackwell provides the lowest cost architecture for inference,” said CoreWeave CEO Michael Intrator.
This expanded collaboration underscores the strength of demand we are seeing across our customer base and the broader market signals as AI systems move into large-scale production.”
CoreWeave was created in 2017.
It is now riding the enterprise AI boom from which so many similarly positioned startups are benefiting from; either from investment firms willing to bankroll operations or similarly inclined tech companies with sufficient capital.
The arrangement between the two companies is similar to one adopted by chipmaker Intel and ADAS firm Mobileye—NVIDIA’s strong balance sheet will be supporting a firm that has proven technology, but lacks capital, which is needed to fund pre-planned infrastructure and facilities.