Nvidia has invested $2 billion in AI infrastructure firm CoreWeave, becoming its second-largest shareholder as the two companies expand their collaboration to scale data centre capacity across the United States.
The investment highlights growing momentum behind so-called “neocloud” providers such as CoreWeave, which specialise in supplying the computing hardware and cloud infrastructure required to develop, deploy and run artificial intelligence applications. Demand for these services has surged in recent years as enterprises accelerate AI adoption.
CoreWeave said the fresh capital from Nvidia will be used to speed up the acquisition of land and power needed for new data centres. The company is targeting more than 5 gigawatts of AI-focused data centre capacity by 2030.
Under the deal, Nvidia will purchase CoreWeave shares at $87.20 per share, adding roughly 23 million shares and nearly doubling its holding, according to calculations based on LSEG data. Prior to the transaction, Nvidia held a 6.3% stake, or about 24.3 million shares, making it CoreWeave’s third-largest shareholder.
The investment adds to Nvidia’s expanding financial exposure to AI-focused companies, including OpenAI, and has drawn scrutiny from some investors concerned about potential circular financing within the AI ecosystem.
Addressing those concerns, a CoreWeave spokesperson said the funds from Nvidia’s investment will not be used to purchase Nvidia processors. Instead, the capital will be directed toward accelerating data centre development, research and development initiatives, and workforce expansion.
Originally a cryptocurrency mining company, CoreWeave has repositioned itself to capitalise on the AI boom by repurposing its infrastructure to lease Nvidia graphics processing units (GPUs) to technology and AI firms.
“Nvidia is the leading and most requested computing platform at every phase of AI,” CoreWeave Chief Executive Officer Michael Intrator said, adding that the expanded partnership reflects strong and growing demand across the company’s customer base.
