Shares of Coreweave (CRWV) rose 9% in premarket trading Monday, after AI giant Nvidia (NVDA) invested another $2 billion in a bid to accelerate the company’s construction of next-generation data centers purpose-built for AI workloads.
The funding, obtained through the purchase of CoreWeave’s Class A stock at a price of $87.20 per share, will help the company achieve more than 5 gigawatts of dedicated AI data centers, or “AI factories,” by the end of the decade.
CRWV closed at $92.98 on Friday. With this early gain, the stock is trading just above $101. NVDA shares are down 0.5% premarket.
Nvidia’s support brings much more than capital. The deal also extends a multi-year collaboration that aligns the two companies on hardware, software and data center strategy.
The companies will also test CoreWeave’s software stack, including its Mission Control resource planning platform, for integration into Nvidia’s broader ecosystem.
“CoreWeave’s deep AI expertise, platform software and unmatched execution speed are recognized across the industry,” said Jensen Huang, founder and CEO of Nvidia in a statement.
Nvidia reached a $6.3 billion deal with CoreWeave last September to buy back unsold computing capacity through 2032.
CoreWeave started as a bitcoin mining company in 2017 under the name Atlantic Crypto, but quickly pivoted to cloud computing and AI after the 2018 crypto crash.
