CoreWeave Jumps on $6.3B Nvidia Cloud Deal
CoreWeave (CRVW) climbed nearly 5% in early U.S. trading Monday after announcing a $6.3 billion agreement with Nvidia (NVDA) that guarantees long-term use of its spare data center capacity.
According to an SEC filing, Nvidia has committed to buying any unused server resources from CoreWeave through April 2032. The deal provides CoreWeave with revenue certainty as it expands infrastructure, while Nvidia secures additional GPU power to meet overwhelming demand for artificial intelligence training. Either firm can exit the arrangement if terms are breached or insolvency occurs.
The pact deepens the partnership between the two companies. Nvidia not only supplies GPUs to CoreWeave but also owns 24.3 million shares of the cloud provider, valued at nearly $4 billion as of the second quarter.
CoreWeave, founded in 2017, specializes in renting out access to Nvidia graphics chips for AI model training. The company went public in March in the largest U.S. venture-backed tech IPO since 2021. Shares surged fivefold after the listing before losing half their value over the summer, though they’ve rebounded about 35% since Labor Day.
