Shares of CoreWeave (CRWV) experienced a notable increase of 9% in pre-market trading on Monday after Nvidia (NVDA) announced a substantial $2 billion investment aimed at enhancing the company”s capabilities in developing advanced data centers tailored for artificial intelligence (AI) workloads. This funding, secured through the acquisition of CoreWeave”s Class A stock at a price of $87.20 per share, is expected to enable the company to scale its operations to over 5 gigawatts of AI-focused data centers, often referred to as “AI factories,” by the end of the decade.
CoreWeave”s stock closed at $92.98 on Friday, and with this early morning surge, it is now trading above $101. In contrast, shares of Nvidia are down by 0.5% in pre-market trading. The financial backing from Nvidia is not merely a monetary injection; it also reinforces a long-standing collaboration that aligns both companies on hardware, software, and data center strategies.
As part of this partnership, the two firms will evaluate CoreWeave”s software solutions, including its resource management platform known as Mission Control, with the intention of integrating these tools into Nvidia”s broader ecosystem. Jensen Huang, Nvidia”s founder and CEO, emphasized the recognition of CoreWeave”s exceptional expertise in AI infrastructure and rapid execution within the industry.
This investment comes on the heels of a previous agreement established last September, where Nvidia committed to purchasing computing services worth $6.3 billion from CoreWeave through 2032. Originally founded as a bitcoin mining enterprise in 2017 under the name Atlantic Crypto, the company pivoted towards cloud computing and AI following the significant downturn in the cryptocurrency market in 2018.
The ongoing partnership between these two tech giants underscores the critical role that companies like CoreWeave play in the rapidly evolving landscape of AI infrastructure, where demand for computing power continues to escalate at an unprecedented rate.
