Shares in cloud computing company CoreWeave (CRWV) boomed over 15% in price on Monday following a new investment from Nvidia. NVIDIA (NVDA) said it will invest an additional $2 billion in the AI cloud company. The deal would help CoreWeave build more than five gigawatts of AI factory capacity by 2030, per Nvidia. NVIDIA’s investments in CoreWeave now total over $5B, with the latest addition adding to its existing $3.3B stake.
CoreWeave and Nvidia will work together to enhance the former’s AI native software, and CoreWeave will deploy “multiple generations” of Nvidia’s AI systems, the chipmaker said. The partnership also includes joint testing of CoreWeave’s AI-focused software and system designs, to fold select tools into Nvidia’s reference architectures for cloud and enterprise customers.
CoreWeave (CRWV)cor will deploy multiple generations of Nvidia hardware across its platform, including newer computing and networking systems, as it scales capacity to meet rising demand for AI workloads. CRWV stock is now up over 9% at press time and a further 40% since January 1.
“AI is entering its next frontier and driving the largest infrastructure buildout in human history,” Jensen Huang, founder and CEO of Nvidia, said in a statement. “CoreWeave’s deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry.”
NVIDIA’s stock fell fractionally on Monday, while shares are up 27% over the past year. The chipmaker faced a rocky past couple of weeks as the fate of its China business remained uncertain and geopolitical tensions sent investors away. Furthermore, precious metals like Gold and Silver are hogging the investment spotlight, taking attention away from tech stocks and cryptocurrencies.