CoreWeave stock nears $100 as Nvidia buys $2B stake
Shares of US cloud computing and AI company CoreWeave rose more than 6% to $99 after Nvidia purchased $2 billion worth of CoreWeave securities.
Highlights
- Nvidia invested $2 billion in CoreWeave by acquiring its shares.
- This move pushed CoreWeave’s share price close to $100 following the weekend.
- Nvidia’s investment represents only a small portion of CoreWeave’s total order book, which is estimated at $55.6 billion, including contracts that have not yet been paid.
On Monday, Nvidia purchased CoreWeave Class A shares at $87.20, below Friday’s closing price of $92.98. The deal gives CoreWeave additional momentum to accelerate its plan to build 5 gigawatts of AI data center capacity by 2030.
After the deal became public, CoreWeave shares rallied sharply and were trading around $99 at the time of writing, up more than 6% over the past 24 hours.
CRWV stock daily chart. Source: TradingView
CoreWeave CEO Mike Intrator told CNBC that the transaction helps the company “accelerate construction” and reduce its reliance on any single customer, enabling further diversification.
Meanwhile, Nvidia CEO Jensen Huang noted that $2 billion is only a small fraction of what will ultimately be required.
“The amount of financing still needed to support these five gigawatts is truly very significant… We are investing only a small percentage of the total capital that will ultimately be required,” Huang said.
Strong demand generates tens of billions in orders
The five-gigawatt target is equivalent to the annual electricity consumption of approximately 4 million US homes, and CoreWeave aims to reach this goal in less than four years.
To support its expansion, CoreWeave listed on the Nasdaq in March and has since raised billions of dollars through equity and debt financing, including earlier funding from Nvidia.
Nvidia has already placed at least $6.3 billion in orders with CoreWeave. The agreement also obligates Nvidia to purchase any remaining computing capacity through April 2032.
In addition, CoreWeave has a major contract with OpenAI and has agreed to provide AI infrastructure to Meta worth $14.2 billion. As a result, the total value of paid orders secured by the cloud provider has reached $22.4 billion, according to Cryptopolitan. Other sources estimate more than twice that amount when including signed but unpaid contracts.
As we wrote, AI startup CoreWeave launches $2.7 billion IPO
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