Nvidia Ramps Up CoreWeave Investment, Another $2 Billion To Accelerate AI Factories Buildout
Nvidia increased its investment in CoreWeave to accelerate the buildout of AI factories, adding more than 5 gigawatts of AI computing capacity by 2030. This builds on an existing agreement under which Nvidia has committed to buy more than $6 billion in services from the firm through 2032.
"Demand for AI continues to grow exponentially and the need for compute has never been greater. To help meet this demand, NVIDIA and CoreWeave are deepening their infrastructure, software, and platform alignment," CoreWeave wrote in a press release.
The new deal involves Nvidia purchasing $2 billion of CoreWeave Class A common stock at $87.20 per share.
Here's what the expanded Nvidia-CoreWeave collaboration means:
Build AI factories developed and operated by CoreWeave using NVIDIA's leading accelerated computing platform technology to meet customer demand.
Leverage NVIDIA's financial strength to accelerate CoreWeave's procurement of land, power and shell to build AI factories.
Test and validate CoreWeave's AI-native software and reference architecture, including SUNK and CoreWeave Mission Control, to unlock deeper interoperability and work towards including those offerings within NVIDIA's reference architectures for NVIDIA's cloud partners and enterprise customers.
Deploy multiple generations of NVIDIA infrastructure across CoreWeave's platform through early adoption of NVIDIA computing architectures, including the Rubin platform, Vera CPUs and Bluefield storage systems
Nvidia CEO Jensen Huang commented, "AI is entering its next frontier and driving the largest infrastructure buildout in human history."
Jensen added, "CoreWeave's deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry. Together, we're racing to meet extraordinary demand for NVIDIA AI factories - the foundation of the AI industrial revolution."
The collaboration builds on CoreWeave's purpose-built cloud, which enables customers to run AI workloads more efficiently and at scale.
CoreWeave CEO Mike Intrator said in a Bloomberg interview that Nvidia funding accounts for about 2% of what his company plans to spend on new infrastructure. "This year, we're going to deliver an enormous amount of infrastructure, and that's just going to accelerate over the next three years," he said.
CoreWeave shares in premarket trading were up nearly 10%, while Nvidia shares were marginally lower.
All of this echoes the circular AI "circle jerk" deals that we pointed out last fall and has only helped propel the AI bubble.