Artificial intelligence cloud provider CoreWeave jumped in early Monday trading after announcing an expanded partnership with Nvidia that includes a $2 billion equity investment from the chip giant.
Nvidia acquired CoreWeave class A common stock at $87.20 per share. Shares climbed 10.8% to $103 in premarket trading.
The agreement positions CoreWeave to accelerate construction of more than five gigawatts of “AI factories” by the end of the decade, the companies said.
“CoreWeave’s deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry,” Nvidia Chief Executive Jensen Huang said in a statement. “Together, we’re racing to meet extraordinary demand for NVIDIA AI factories—the foundation of the AI industrial revolution.”
CoreWeave has emerged as the largest of the “neoclouds”—providers specializing in cloud-computing infrastructure for artificial intelligence workloads. The company has accumulated a revenue backlog of $55.6 billion through contracts with OpenAI, Meta Platforms, and other major technology firms. It maintains close ties to Nvidia, which supplies access to state-of-the-art hardware.
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