Strategic stake boosts confidence in AI infrastructure
Shares of CoreWeave climbed nearly 6% on Monday after Nvidia disclosed a $2 billion equity investment in the artificial intelligence infrastructure company. The move reinforces Nvidia’s growing influence across the AI data center ecosystem.
Nvidia acquired CoreWeave Class A shares at $87.20 per share, a price below the previous session’s close. The capital injection is intended to support CoreWeave’s plan to expand its AI infrastructure footprint to 5 gigawatts of capacity by 2030.
Scaling power capacity to meet AI demand
CoreWeave CEO Mike Intrator said the investment will allow the company to accelerate data center construction while reducing reliance on any single customer as capacity expands. Five gigawatts of power is roughly equivalent to the annual electricity consumption of about four million U.S. households.
Nvidia CEO Jensen Huang emphasized that the investment represents only a fraction of the total capital required to reach that scale, noting that significantly more funding will be needed as the buildout continues.
CoreWeave’s role in the AI infrastructure stack
CoreWeave generates revenue by developing and leasing data centers equipped with Nvidia’s graphics processing units, which are essential for training AI models and running large-scale workloads. The company has emerged as a key player in what investors often describe as the “neocloud” segment.
Even before this latest deal, Nvidia was already a major supporter. In regulatory filings last year, CoreWeave disclosed multibillion-dollar agreements with Nvidia that include long-term commitments to purchase unused capacity through 2032.
Rapid expansion brings both opportunity and risk
Since its Nasdaq listing in March, CoreWeave has raised substantial amounts of debt and equity to finance aggressive growth. The company has secured large contracts with major technology players, including Meta and OpenAI, as AI firms race to secure computing power.
At the same time, investor concerns have surfaced around leverage levels and the pace of spending. Despite that, company leadership argues the current buildout reflects an unprecedented phase in the development of global AI infrastructure.
Intrator has said that artificial intelligence will become embedded across nearly all industries, making today’s investments foundational for decades of future growth.
