Shares of Coreweave (CRWV) rose 9% in premarket trading Monday after AI powerhouse Nvidia (NVDA) invested another $2 billion in an effort to accelerate construction of next-generation data centers built specifically for AI workloads.
The financing, which was raised through the purchase of CoreWeave Class A shares at $87.20 per share, will help the company expand its capacity to 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 the initial gain, the stock is trading just above $101. NVDA shares are down 0.5% in premarket trading.
Nvidia’s backing provides more than capital. The agreement also expands a years-long collaboration that aligns both companies on hardware, software and data center strategy.
The companies will also test CoreWeave’s software stack, including its Mission Control resource scheduling platform, with a view to integrating it into the broader Nvidia ecosystem.
“CoreWeave’s deep AI factory expertise, platform software, and unparalleled execution speed are recognized throughout the industry,” said Jensen Huang, founder and CEO of Nvidia, in a statement.
Last September, Nvidia entered into a $6.3 billion deal with CoreWeave to buy unsold computing capacity through 2032.
CoreWeave started as a bitcoin mining company in 2017 under the name Atlantic Crypto, but quickly pivoted into cloud computing and artificial intelligence after the 2018 cryptocurrency crash.
