Nvidia Invests $2 Billion in CoreWeave for 5 GW of AI Power
Nvidia aims to accelerate data center company CoreWeave's goal of adding over 5 gigawatts of AI processing capacity by 2030 by investing $2 billion in the debt-laden firm.
Major Support for AI Infrastructure
Chip giant Nvidia announced on Monday that it has invested $2 billion in CoreWeave, an AI-focused data center service provider. This investment aims to accelerate CoreWeave's efforts to install over 5 gigawatts of additional AI processing capacity by 2030.
Strategic Partnership and Technical Integration
Nvidia was already a shareholder in CoreWeave, and under the recent agreement, purchased the company's shares at $87.20 per share. As part of the deal, the two companies plan to build 'AI factories' (data centers) that will utilize Nvidia products. CoreWeave will also integrate Nvidia's new Rubin chip architecture, Bluefield storage systems, and Vera CPU series products across its platform.
This collaboration signals an era where AI hardware and cloud services are becoming increasingly intertwined. Nvidia will also assist CoreWeave in securing land and power. Such comprehensive infrastructure investments are an indicator of interest in critical areas within the AI sector, as also discussed in the article titled Is the Firefighting Nozzle AI's New Gold Mine?.
Debt Burden and Business Model Debates
The agreement represents significant support for CoreWeave, which has borrowed billions of dollars in recent months to expand its data center operations. According to PitchBook data, the company has $18.81 billion in debt obligations as of September 2025. CoreWeave reported $1.36 billion in revenue in the third quarter.
The company's CEO, Michael Intrator, defended the business model of financing operations by borrowing against its GPUs as collateral. Addressing concerns about 'circular agreements' in the AI sector, Intrator stated that companies 'have to work together' to cope with 'violent swings in supply and demand.' This statement is reminiscent of the analysis titled Experian Tech Chief Said 'We Are Not Palantir.' So What Are They? for those wanting to understand the nature of relationships in the sector.
Rapid Growth and Acquisitions
CoreWeave has been successfully riding the AI wave since its transformation from a crypto mining company to a provider of data center services for AI training and inference. The company, which went public last March, continues to expand its technology stack through a series of acquisitions. It has incorporated companies such as Weights & Biases, OpenPipe, Marimo, and Monolith. It also expanded its cloud partnership with OpenAI.
CoreWeave's customers include major tech companies like OpenAI, Meta, and Microsoft. The company's shares gained over 15% following the news of Nvidia's investment. For more information on how AI is transforming business workflows, you can check out the article titled DeepSeek's New Agent: The AI Revolution Radically Transforming Industry Workflows.
Sectoral Impact and Nvidia's Strategy
For Nvidia, seen as the biggest supporter and driving force behind the AI boom, this agreement is the latest among dozens of investments made in the past year. The company is doing everything it can to maintain the pace of investment and development in new technology. Under the agreement, Nvidia will help CoreWeave purchase land and power for its data centers and will integrate the smaller company's AI software and architecture into Nvidia's reference architecture to be sold to cloud operators and enterprise firms.
Frequently Asked Questions
Why is Nvidia investing in CoreWeave?
Nvidia is making this investment to accelerate CoreWeave's plan to add over 5 GW of capacity and to enable broader use of its own chip and software ecosystem, due to the rapidly increasing global demand for AI processing capacity.
What is CoreWeave's debt situation?
As of September 2025, CoreWeave has $18.81 billion in debt obligations. The company follows a business model of financing growth by borrowing against its GPUs as collateral.
What will be the impact of this deal on the sector?
The deal shows that AI infrastructure investments are intensifying and that strategic ties between hardware manufacturers and cloud service providers are deepening. It is expected to impact competition and market consolidation.
What does "AI Factories" mean?
"AI Factories" refers to large-scale data centers specifically optimized for AI model training and inference operations, characterized by high power consumption and equipped with Nvidia hardware.
