Nvidia Corp, a major maker of artificial intelligence chips, invested an additional $2 billion in CoreWave Inc to help accelerate an effort to add more than 5 gigawatts of AI computing capacity by 2030.
Nvidia bought CoreWave Class A common stock for $87.20 a share, the companies said Monday. As part of the collaboration, CoreWave will be one of the first to deploy upcoming 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 worth of services from the firm through 2032.
“This investment is confidence in their growth and confidence in CoreWave’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 engineering work of both companies and getting computing capacity online, he said.
The deal is the latest example of Nvidia using its vast resources to advance the broader artificial intelligence industry. The world’s most valuable company has pledged tens of billions of dollars to AI companies, funding the deployment of new infrastructure built with its products.
CoreWeave shares were up 9% at $101.32 in premarket trading on Monday. Nvidia stock slipped less than 1%.
This announcement also highlights a new business avenue for Nvidia. The Vera-branded CPU is the first time the company has introduced such a chip on a standalone basis.
That means Nvidia will challenge processors from Intel Corp and Advanced Micro Devices Inc inside data centers. Vera products may also provide an alternative to in-house components that cloud providers use, such as Amazon.com Inc. Of graviton. Previous Nvidia CPUs were 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 besides Coreview, but said, “There will be many.”
Nvidia is already the market leader for graphics processing units, or GPUs, powerful chips used to develop and run AI models. With the CPU often described as the brain of the computer, it is increasingly targeting the computing industry.
CoreWeave, which went public last year in one of the largest stock offerings of 2025 and is now valued at about $47 billion, is best known as a neocloud — a specialized cloud-computing provider used by AI services. The Nvidia investment will strengthen CoreWave’s finances and help address concerns about its expensive spending on data centers.
Under its agreement, Nvidia will assist CoreWave in purchasing land and electricity for the data centers. It will also market CoreWeave’s AI software and architecture designs to cloud partners and large business customers.
CoreWeave has ambitious plans. Five gigawatts is equivalent to the output of five large nuclear reactors. One gigawatt of electricity is enough to power approximately 750,000 American homes at any time.
The Nvidia funds represent about 2% of what Corewave plans to spend to bring new infrastructure online, CEO Mike Intrator said in an interview.
“This year, we are going to provide a huge amount of infrastructure and it will accelerate further in the next three years,” he said.
Before Monday’s deal, Nvidia was the fourth-largest holder of CoreView shares, according to data compiled by Bloomberg. The Santa Clara, California-based chip giant owns about 6% of the data center operator.
Nvidia has said it is spending the money to help remove barriers to AI adoption. But the massive investments that have engulfed many of the biggest AI companies have raised concerns about circular deals, arrangements where a business invests in an entity that also acts as a client. In addition to CoreWeave, Nvidia has invested in OpenAI, Anthropic PBC, Elon Musk’s XAI, and others.
In response to circular-deal concerns, Nvidia’s CEO said the investment represents a fraction of the total infrastructure spending by those businesses.
He said big customers such as Microsoft Corp and Alphabet Inc continue to invest money in new devices because it helps their existing businesses. New companies – which Huang described as “AI-native” – were born in a wave of venture investment. Those companies in areas like automated coding, health care and video editing need access to their own computing resources, he said.
“These are generational companies – what we invest in is our belief in them,” Huang said. “But it’s a small percentage of the amount of money they ultimately have to raise, and so the idea that it’s circular – it’s ridiculous.”
CoreWeave has worked to diversify its customer base away from Microsoft, which accounted for two-thirds of sales in its most recently reported quarter. The effort includes agreements with OpenAI and Facebook owner Meta Platform Inc.
CoreWeave is losing money, its capital expenditures far exceed revenues. And the company’s use of debt financing for its data center construction had spooked some investors. In December, CoreWeave shares plunged after it revealed plans to raise $2 billion by issuing debt that could be exchanged for shares.
That move also contributed to broader concerns about an AI bubble – which Huang and his peers have downplayed. Nvidia’s CEO has argued that new technology is being adopted so rapidly that the investment is already becoming profitable. The only hurdle, he said, is the lack of computing capacity.
Nvidia shows little sign of slowing down in its growth journey. After predicting nearly half a trillion dollars in revenue from data center chips by the end of 2026, Nvidia said this month that its forecast has only grown more bullish.
In the interview, Huang repeated the claim that overall demand remains “huge”.