Nvidia to invest another $2 billion in cloud services provider CoreWeave, its stock jumped
CoreWeave shares jumped nearly 9% on the back of Nvidia's $2 billion investment / Photo: PJ McDonnell / Shutterstock
Nvidia has invested an additional $2 billion in CoreWeave, a cloud services provider for developing and training AI models. With the help of this deal, Nvidia expects to accelerate the realization of plans to build more than 5 gigawatts of computing power for artificial intelligence by 2030, Bloomberg writes.
The chipmaker acquired CoreWeave's Class A common stock at $87.2 per share, the cloud services provider said.
As part of the partnership, CoreWeave will be one of the first companies to use Nvidia's future products, including storage and a new central processing unit (CPU). Earlier last September, Nvidia, which already supplies CoreWeave with its AI chips, also agreed to buy out any unsold cloud capacity of CoreWeave's data centers through 2032. The deal was valued at more than $6 billion.
"This investment is an expression of confidence in their [the company's] growth, in CoreWeave's management and in their business model," Nvidia CEO Jensen Huang told Bloomberg. At the same time, he said, the partnership itself is more focused on coordinating the two companies' engineering efforts and accelerating the deployment of computing power.
CoreWeave shares jumped 9.4% on the news, while chipmaker Nvidia's shares fell 0.7%.
This article was AI-translated and verified by a human editor
