Nvidia’s $2B Investment in CoreWeave Boosts AI Infrastructure Expansion
Nvidia, the renowned chip giant, has recently announced a substantial $2 billion investment in CoreWeave, an AI infrastructure provider. This strategic move has made Nvidia the second-largest shareholder of the company. The shared vision of both firms is to expand artificial intelligence computing capacity across the United States.
The investment news, which was disclosed on Monday, led to a 12% surge in CoreWeave shares. Investors are optimistic about the expanded partnership. Nvidia acquired CoreWeave Class A common stock at $87.20 per share. The joint venture aims to construct over 5 gigawatts of AI data center capacity by 2030.
“We’re at the dawn of the AI infrastructure build-out, and the demand is simply overwhelming,” said Jensen Huang, Nvidia’s CEO, in an interview with CNBC. He described the venture as “the largest infrastructure build-out in human history.” This investment will enable CoreWeave to expedite the procurement of land and power necessary for building specialized AI data centers, often referred to as “AI factories.”
Transforming from a cryptocurrency miner to an AI cloud provider, CoreWeave has secured significant contracts with tech giants such as Microsoft, Meta, and OpenAI. The company recently disclosed deals worth over $22 billion with OpenAI and $14 billion with Meta. As part of the expanded collaboration, CoreWeave will be among the first to deploy Nvidia’s upcoming Rubin platform, Vera CPUs, and BlueField storage systems.
Source: CNBC