CoreWeave stock jumps 8% as Nvidia invests $2 billion to expand AI data center capacity

Nvidia purchased CoreWeave Class A common stock at $87.20 per share, according to a release. The share price is a discount from Friday’s closing price of $92.98.

“CoreWeave’s deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry,” Nvidia CEO Jensen Huang said in a statement. “Together, we’re racing to meet extraordinary demand for NVIDIA AI factories—the foundation of the AI industrial revolution.”

Nvidia’s investment will help CoreWeave accelerate its buildout of “5 gigawatts of AI factories by 2030,” the companies said.

A gigawatt is a measure of power that’s becoming an increasingly common metric for describing AI data center capacity. Five gigawatts is roughly equivalent to the annual power consumption of 4 million U.S. households, according to a CNBC analysis of data from the Energy Information Administration.

CoreWeave primarily generates revenue by building and renting out data centers that are full of Nvidia‘s graphics processing units, which are key for training models and running large AI workloads. The company, which some investors have classified as a “neocloud,” has become a crucial player in an increasingly interconnected web of AI infrastructure partners.

Nvidia is already a major CoreWeave backer.

In September, CoreWeave disclosed an order worth at least $6.3 billion from Nvidia in a filing with the U.S. Securities and Exchange Commission. Nvidia has an obligation to buy the “residual unsold capacity through April 2032, according to the agreement.

CoreWeave went public on the Nasdaq in March, and the company raised billions of dollars in debt and equity, including from Nvidia.