CoreWeave (CRWV) stock surged more than 15% early Monday after Nvidia (NVDA) said it will invest an additional $2 billion in the AI cloud company.
AI chipmaker Nvidia said the deal would help CoreWeave build more than five gigawatts of AI factory capacity by 2030. The two companies will work together to enhance CoreWeave’s AI native software, and CoreWeave will deploy “multiple generations” of Nvidia’s AI systems, the chipmaker said.
“AI is entering its next frontier and driving the largest infrastructure buildout in human history,” Jensen Huang, founder and CEO of Nvidia, said in a statement. “CoreWeave’s deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry.”
The investment announced Monday comes in addition to Nvidia’s $3.3 billion stake in CoreWeave. Nvidia has invested heavily in “neocloud” companies focused on AI cloud offerings, including CoreWeave, Nebius, and Lambda Labs. The circular dynamic in which Nvidia invests in its own customers has raised eyebrows on Wall Street and added to concerns over an AI bubble.
Read more: How to protect your portfolio if you’re worried about an AI bubble
As Nvidia’s chips have been in hot demand, the chipmaker’s legacy cloud hyperscalers have begun turning to the neoclouds to access the company’s AI systems. Microsoft (MSFT) accounts for the lion’s share of CoreWeave’s revenue, while Meta (META) and Alphabet (GOOG, GOOGL) are also customers.
CoreWeave’s jump Monday puts shares up nearly 16% for the month and 138% over the past year.
Nvidia stock fell fractionally on Monday, while shares are up 27% over the past year. The chipmaker faced a rocky past couple of weeks as the fate of its China business remained uncertain and geopolitical tensions sent investors fleeing riskier assets.r
Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.
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