Nvidia Invests $2 Billion in CoreWeave to Expand AI Factories

Nvidia Corp. invested $2 billion in the neocloud operator CoreWeave, purchasing Class A common stock at $87.20 per share. This move increased Nvidia's total holdings to more than 47 million shares, representing an 11.5% stake valued at approximately $4.6 billion. The partnership aims to expand CoreWeave's AI computing capacity to over five gigawatts by 2030 through the construction of specialized AI factories.

As part of the agreement, CoreWeave will be among the first to deploy Nvidia's latest hardware, including the Rubin platform and BlueField storage systems. Notably, Nvidia is introducing the Vera CPU as a standalone product for the first time, placing the company in direct competition with Intel and AMD in the data center CPU market. Nvidia will also assist CoreWeave with land and power acquisition and market CoreWeave's AI-native software to enterprise clients.

The investment comes amid financial scrutiny for CoreWeave, whose long-term debt rose from $3.4 billion in September 2024 to $10.3 billion by September 2025. While some investors raised concerns regarding circular financing, Nvidia CEO Jensen Huang defended the move as a confidence vote in CoreWeave's management. CoreWeave CEO Michael Intrator noted that the $2 billion represents only about 2% of the company's planned infrastructure spending. Following the announcement, CoreWeave shares rose as much as 13.7%, and several Wall Street analysts upgraded the stock to buy ratings.