CoreWeave shares surged 12% on Monday after Nvidia announced a $2 billion equity investment in the artificial intelligence infrastructure provider, reinforcing its strategic bet on the fast-growing AI data center market.
According to a joint statement, Nvidia purchased CoreWeave’s Class A common stock at $87.20 per share, representing a discount to Friday’s closing price of $92.98. The investment is expected to accelerate CoreWeave’s plans to build out up to five gigawatts of AI data center capacity by 2030.
CoreWeave Chief Executive Officer Mike Intrator said the deal would support the company’s expansion strategy while reducing reliance on any single customer as it scales its data center footprint.
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“This deal allows us to accelerate our build, which will lead to continued diversification and reducing dependency on any particular client as we scale into this additional data center capacity,” CoreWeave CEO Mike Intrator said.
A gigawatt, increasingly used to measure AI data center capacity, is equivalent to the annual power consumption of roughly four million U.S. households, according to CNBC’s analysis of Energy Information Administration data.
Nvidia Chief Executive Officer Jensen Huang described the investment as a relatively small portion of the total capital required to support CoreWeave’s long-term expansion plans.
“We’ve invested $2 billion into CoreWeave, but the amount of funding that needs to be raised to support that five gigawatts is really quite significant,” Huang said. “We’re investing a small percentage of the amount that ultimately has to go and be provided.”
CoreWeave’s core business involves building and leasing data centers equipped with Nvidia’s graphics processing units, which are critical for training artificial intelligence models and running large-scale AI workloads. The company, often described by investors as a “neocloud” provider, has emerged as a key player in the global AI infrastructure ecosystem.
Nvidia was already a major backer of CoreWeave prior to the latest investment. In September, CoreWeave disclosed an order valued at a minimum of $6.3 billion from Nvidia, under which Nvidia is obligated to purchase residual unsold capacity through April 2032.
CoreWeave listed on the Nasdaq in March and has since raised billions of dollars through a mix of debt and equity financing, including funding from Nvidia.
“We’re in the beginning of the AI infrastructure build-out, and the demand is just extraordinary,” Huang said.
The company has also been actively expanding its customer base. In September, CoreWeave announced a $14.2 billion AI cloud infrastructure deal with Meta, shortly after extending its agreement with OpenAI to $22.4 billion.
Despite its rapid growth, CoreWeave’s stock has faced volatility in recent months amid investor concerns over the company’s rising debt levels used to finance large-scale infrastructure projects.
Earlier this month, Intrator said artificial intelligence would become deeply embedded across industries over the long term.
“AI will eventually be embedded into absolutely everything we do,” he said, adding that the technology would “continue to pay dividends over the next 100 years.”
He noted that companies like CoreWeave are currently building foundational infrastructure at an unprecedented pace to meet surging global demand for AI computing capacity.
