Nvidia Invests $2 Billion in CoreWeave to Build AI Factories

Nvidia Corp. invested $2 billion in CoreWeave Inc., purchasing Class A common stock at $87.20 per share to accelerate the development of AI factories. This investment nearly doubled Nvidia's stake in the neocloud operator to approximately 11.5%, with total holdings of more than 47 million shares valued at $4.6 billion. The partnership aims to add over 5 gigawatts of AI computing capacity by 2030, with Nvidia providing financial support to help CoreWeave secure land and power for its data centers.

As part of the agreement, CoreWeave will be among the first to deploy Nvidia's new standalone Vera CPU, an Arm-based processor for data centers, alongside Rubin chip architecture and BlueField storage systems. Nvidia will also market CoreWeave's AI-native software and reference architectures to enterprise clients. This strategic move places Nvidia in direct competition with Intel Corp. and Advanced Micro Devices Inc. in the data center CPU market.

The investment follows concerns regarding circular financing and CoreWeave's debt, which rose from $3.4 billion in September 2024 to $10.3 billion by September 2025. Nvidia CEO Jensen Huang dismissed these concerns as "ridiculous," noting the investment is a small fraction of the total capital AI-native companies must raise. CoreWeave reported Q3 revenue of $1.36 billion, a 134% year-over-year increase, though it has not yet reached profitability. Following the announcement, CoreWeave shares rose as much as 17%, prompting buy-rating upgrades from analysts at D.A. Davidson and Deutsche Bank.