Nvidia Corporation Provides $6.3 Billion Capacity Backstop for CoreWeave Holdings Inc.

Nvidia Corporation and CoreWeave Holdings Inc. signed a $6.3 billion agreement to secure the sale of unused cloud computing capacity through April 13, 2032. The deal, which builds on a 2023 arrangement and was disclosed in recent SEC filings, obligates Nvidia Corporation to purchase any residual capacity that CoreWeave Holdings Inc. cannot sell to its own customers. This financial backstop allows CoreWeave Holdings Inc. to access favorable lending terms and credit necessary to fund capital expenditures, estimated between $20 billion and $23 billion for 2025.

For Nvidia Corporation, the arrangement ensures reliable access to GPU resources and reduces reliance on major providers like Microsoft Corporation and Amazon. The chipmaker also holds an equity stake in CoreWeave Holdings Inc., owning approximately 24.3 million Class A shares. This strategy mirrors a separate $1.5 billion deal Nvidia Corporation struck with Lambda to lease back GPUs.

CoreWeave Holdings Inc. has expanded its client base with massive contracts, including a total of $22.4 billion with OpenAI Inc. through 2029 and a $14 billion agreement with Meta Platforms Inc. through 2031. Despite these wins and a 207% year-over-year revenue increase to $1.21 billion in the second quarter, CoreWeave Holdings Inc. remains unprofitable. The company reported a second-quarter loss of $290.5 million, with operating expenses increasing nearly fourfold to $1.19 billion.