NVIDIA Doubles Down on CoreWeave with $2 Billion Investment to Power Global AI Infrastructure

NVIDIA Doubles Down on CoreWeave with $2 Billion Investment to Power Global AI Infrastructure

In a strategic move to solidify its dominance in the AI ecosystem, NVIDIA has announced a massive $2 billion follow-on investment in CoreWeave, a leading specialized GPU cloud provider. The investment involves purchasing Class A shares at $87.20 per share. The capital is earmarked to support CoreWeave’s ambitious expansion plan: reaching 5 gigawatts (GW) of AI data center capacity by 2030.

A Symbiotic Partnership

CoreWeave and NVIDIA share a long and intertwined history. As a specialized cloud provider that exclusively utilizes NVIDIA GPUs, CoreWeave has been a critical partner in making AI compute accessible to startups and enterprises alike. NVIDIA, which already held a stake in CoreWeave prior to its highly successful IPO last year, continues to see the firm as a primary vehicle for its hardware deployment.

The Historical Scale of AI Infrastructure

NVIDIA CEO Jensen Huang emphasized the magnitude of this era, stating that AI is driving the largest infrastructure investment in human history. He praised CoreWeave for its unparalleled expertise in building AI-native data centers and providing the specialized tools necessary to accelerate project timelines from months to weeks.

• To illustrate the scale of 5 gigawatts (GW), this amount of electricity is enough to power millions of homes or is equivalent to several large nuclear power plants. CoreWeave's target reflects the anticipated massive increase in demand for processing large-scale AI models like GPT-5 or Llama-4 over the next decade.

• During periods of NVIDIA's Blackwell chip shortages, CoreWeave reportedly often received priority access to hardware over some cloud giants (such as AWS or Google), as CoreWeave didn't develop its own chips to compete with NVIDIA but chose to be a "pure-play partner."

• CoreWeave is known in the financial world for using NVIDIA's GPUs as collateral to secure billions of dollars for data center construction, a new business model known as "GPU-backed lending."

• NVIDIA's stakes in its major customers (Vertical Integration) ensure the continued strength of the market for next-generation GPUs and allow NVIDIA to influence the direction of global AI infrastructure development. 

 

From $12 Shares to AI Supremacy: Inside Jensen Huang’s Chat with Larry Fink.