CoreWeave Stock Surges 8% on Nvidia’s $2 Billion AI Data Center Expansion

Nvidia Invests $2 Billion in CoreWeave, Bolstering AI Infrastructure Race

Shares of CoreWeave saw a significant surge, climbing 8% in pre-market trading on Monday, following the announcement of a substantial $2 billion investment from artificial intelligence powerhouse Nvidia. This strategic infusion of capital underscores the deepening collaboration between the two companies and highlights the escalating demand for robust AI infrastructure.

The investment, structured as a purchase of CoreWeave Class A common stock at $87.20 per share, represents a slight discount to CoreWeave’s previous closing price of $92.98. Nvidia CEO Jensen Huang emphasized CoreWeave’s “deep AI factory expertise, platform software, and unmatched execution velocity,” stating that together, they are accelerating the development of “NVIDIA AI factories,” which he described as the bedrock of the AI industrial revolution.

This significant capital injection is earmarked to fuel CoreWeave’s ambitious expansion plans, aiming to build out “5 gigawatts of AI factories by 2030.” To contextualize this scale, five gigawatts is a colossal amount of power, roughly equivalent to the annual electricity consumption of 4 million average U.S. households, according to analyses from the Energy Information Administration. This metric is rapidly becoming a standard for gauging the immense power requirements of advanced AI data centers.

CoreWeave has carved a critical niche in the AI ecosystem by specializing in the construction and leasing of data centers. These facilities are heavily provisioned with Nvidia’s cutting-edge graphics processing units (GPUs), the indispensable hardware for both training complex AI models and executing demanding AI workloads. The company has been positioned by some market observers as a “neocloud” provider, a term reflecting its unique blend of specialized infrastructure and cloud-like service delivery.

This latest investment builds upon an already strong existing relationship. In September, CoreWeave disclosed a substantial order from Nvidia, valued at no less than $6.3 billion. This prior agreement stipulated that Nvidia would purchase unsold capacity through April 2032, demonstrating a long-term commitment to securing essential AI computing resources.

CoreWeave’s journey to this point has been marked by rapid growth and strategic financing. The company, which publicly debuted on the Nasdaq in March, has successfully raised billions of dollars through a combination of debt and equity, with Nvidia being a key participant in these funding rounds. This latest investment from Nvidia not only provides crucial capital but also signals strong confidence in CoreWeave’s operational capabilities and its pivotal role in the accelerating AI landscape. The ongoing demand for advanced AI infrastructure suggests that companies like CoreWeave, backed by industry leaders like Nvidia, are well-positioned to capitalize on the transformative potential of artificial intelligence.