Nvidia has invested $2 billion in cloud infrastructure provider CoreWeave at a purchase price of $87.20 per share, the companies said on Monday (January 26).
Alongside the investment, Nvidia and CoreWeave have expanded their strategic partnership, aimed at accelerating CoreWeave’s data centre build-out to meet surging demand for AI-focused computing capacity.
Investment and stake details
Nvidia has significantly increased its investment in AI infrastructure provider CoreWeave, acquiring roughly 23 million additional shares. The move nearly doubles Nvidia’s stake in the company, elevating it from the third-largest shareholder with 6.3% (24.3 million shares) to the second-largest investor, according to Reuters calculations based on LSEG data.
CoreWeave expansion plans
The fresh funding will support CoreWeave’s ambitious plan to build more than 5 gigawatts of AI data centre capacity by 2030. Nvidia’s capital is expected to accelerate the procurement of land and power infrastructure needed for the facilities.
AI infrastructure boom
CoreWeave is among the growing number of so-called “neoclouds” that provide the technology backbone for companies to build, run, and deploy AI systems. Demand for such AI-focused cloud services has surged in recent years as enterprise adoption of artificial intelligence technologies accelerates.
For CoreWeave, the investment provides crucial capital to speed up its growth in a competitive AI cloud market.
CoreWeave's Nvidia investment purpose clarified
CoreWeave has clarified that the $2 billion investment from Nvidia will not be spent on purchasing Nvidia processors. Instead, the funds will be directed toward accelerating other data center projects, research and development, and scaling the company’s workforce, a spokesperson told Reuters.
CEO comments on AI demand
CoreWeave CEO Michael Intrator highlighted the strong demand for AI computing infrastructure, saying:
"Nvidia is the leading and most requested computing platform at every phase of AI ... This expanded collaboration underscores the strength of demand we are seeing across our customer base."