Nvidia Invests $2 Billion More in CoreWeave, Offers New Chip

Nvidia Corp., the dominant maker of artificial intelligence chips, invested an additional $2 billion in the cloud computing firm and key customer CoreWeave Inc., marking the latest example of the circular financing deals that have lifted valuations of AI companies and fueled concerns about a bubble.

Nvidia purchased CoreWeave Class A common stock at $87.20 a share, the companies said Monday, in a move aimed at speeding up an effort to add more than 5 gigawatts of AI computing capacity by 2030. As part of the collaboration, CoreWeave will be among the first to deploy forthcoming Nvidia products, including storage systems and a new central processing unit, or CPU. Nvidia, already a CoreWeave investor, previously agreed to buy more than $6 billion in services from the firm through 2032.

“The investment is confidence in their growth and confidence in CoreWeave’s management and confidence in their business model,” Nvidia Chief Executive Officer Jensen Huang said in an interview. But the partnership itself is more focused on aligning the two companies’ engineering work and getting computing capacity online, he said.

Nvidia has been using its enormous resources to propel the broader artificial intelligence industry, by partnering with and heavily investing in its own customers. The world’s most valuable company has pledged tens of billions of dollars toward AI companies that use its chips and is bankrolling the deployment of new infrastructure that’s critical to sustaining demand for its products.

CoreWeave shares rose as much as 17% in trading Monday, while Nvidia’s stock inched up by less than 1%.

The announcement puts a spotlight on a new business avenue for Nvidia. The CPU, which carries the Vera brand, marks the first time the company has offered such a chip on a standalone basis.

That means Nvidia will be challenging processors from Intel Corp. and Advanced Micro Devices Inc. inside data centers. The Vera product also could offer an alternative to in-house components that cloud providers use, such as Amazon.com Inc.’s Graviton. Previous Nvidia CPUs have been only available as part of systems combined with other chips.

“Vera is completely revolutionary,” Huang said of the CPU. He declined to name other customers for it besides CoreWeave but said, “There are going to be many.”

Intel shares fell as much as 6.1%, while AMD’s slipped as much as 3.6%.Bloomberg's Anurag Rana joins to discuss on Bloomberg intelligence.

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