Nvidia invests US$2 billion in CoreWeave, expands partnership

Nvidia has invested US$2 billion (HK$15.6 billion) in CoreWeave at a purchase price of US$87.20 per share, the companies said on Monday, as they expand their partnership to boost CoreWeave’s data center build out ambitions.

Shares of CoreWeave jumped nearly 10 percent in premarket trading.

CoreWeave is targeting to build more than 5 gigawatts in artificial intelligence data center capacity by 2030. The fresh investment from Nvidia will help the AI infrastructure provider speed up procurement of the land and power required to build the facilities.

So-called “neoclouds” like CoreWeave, which provide tech companies with the infrastructure needed to build, run and deploy AI technologies, have seen a surge in demand in recent years as enterprise adoption of AI picks up.

Nvidia was CoreWeave’s third largest shareholder with a 6.3 percent stake, or 24.3 million shares, in the company.

It is now nearly doubling its stake in Coreweave by adding roughly 23 million shares in the firm, becoming its second-largest investor now, according to Reuters calculations based on data compiled by LSEG.

Reuters