Jan 26 (GeokHub) — Nvidia has invested $2 billion in AI infrastructure firm CoreWeave, becoming the company’s second-largest shareholder as the two firms expand their partnership to scale data center capacity across the United States.
The investment lifted CoreWeave shares 9% in premarket trading on Monday, highlighting strong investor appetite for companies supplying the computing backbone behind the fast-growing artificial intelligence industry.
CoreWeave is part of a new class of so-called “neocloud” providers, which specialize in delivering high-performance hardware and cloud capacity tailored for AI workloads. Demand for such services has surged as enterprises accelerate adoption of generative AI and machine-learning applications.
Expanding U.S. Data Center Capacity
The fresh capital injection will allow CoreWeave to speed up the acquisition of land and power needed to expand its data center footprint. The company is targeting more than 5 gigawatts of AI data center capacity by 2030, a scale that would place it among the most significant AI-focused infrastructure providers globally.
Nvidia said it invested at a price of $87.20 per share, adding roughly 23 million shares and nearly doubling its stake in CoreWeave, according to Reuters calculations based on LSEG data. Prior to the deal, Nvidia held a 6.3% stake, equivalent to 24.3 million shares.
Investor Scrutiny and Strategic Clarity
Nvidia’s expanding investments across the AI ecosystem — including stakes in OpenAI and neocloud providers — have drawn scrutiny from investors concerned about potential circular financing within the sector.
Addressing those concerns, a CoreWeave spokesperson said the new funding will not be used to purchase Nvidia processors, but instead directed toward accelerating broader data center investments, research and development, and workforce expansion.
Once a cryptocurrency miner, CoreWeave has repositioned itself to capitalize on the AI boom by repurposing its infrastructure to lease Nvidia GPUs to technology and AI companies.
Strengthening the AI Supply Chain
CoreWeave Chief Executive Michael Intrator said the expanded collaboration reflects strong and sustained demand for Nvidia-powered computing across AI development stages.
“Nvidia is the leading and most requested computing platform at every phase of AI,” Intrator said. “This expanded collaboration underscores the strength of demand we are seeing across our customer base.”
