Nvidia, CoreWeave deepen AI alliance with $2B investment for ‘AI factories'

Chip giant Nvidia announced a $2 billion equity investment in CoreWeave, a leading cloud provider built on Nvidia’s technology.

The investment was announced on Monday, January 26, solidifying a deep partnership between the two companies at the heart of the AI boom.

CoreWeave Class A common stock was purchased by Nvidia at $87.20 per share. Following the investment news, CoreWeave stock has surged by over 10% in pre-market trading.

However, Nvidia’s share saw a slight dip.

The strategic investment is aimed at accelerating CoreWeave’s ambitious plan to build over 5 gigawatts of AI data centre capacity, referred to as “AI factories,” by 2030.

This infrastructure is significant for training and running advanced artificial intelligence models.

Related to the current investment,t Nvidia’s CEO Jensen Huang stated, “AI is entering its next frontier and driving the largest infrastructure buildout in human history.”

He also admired CoreWeave’s “unmatched execution velocity” as both companies race to meet “extraordinary demand.”

The CoreWeave works as a specialised “neocloud” that earns by renting out its data centres packed with Nvidia’s graphics processing units (GPUs) to AI labs and enterprises.

Earlier, the company had secured massive contracts, including multi-billion-dollar deals with OpenAI and Meta, fueling its rapid growth.