Shares in the AI cloud-computing company climbed over 7% after it announced a major capacity order with long-term investor and key supplier Nvidia.
CoreWeave (CRWV) shares closed 7.6% higher on Monday after it announced a major $6.3 billion order from Nvidia. The agreement guarantees that Nvidia will purchase CoreWeave’s unsold computing capacity until 2032, ensuring steady demand for its infrastructure.
The announcement follows a period of significant volatility for CoreWeave since its initial public offering (IPO) back in March. CRWV shares have risen 390% from its $40 debut price, before dropping back below $90 over the summer.
Yesterday, CoreWeave stock climbed as high as 8.4% during regular trading hours before closing at $120.47. According to market data, the New Jersey-based firm now has a valuation of around $59 billion.
Company bosses will release a full copy of the agreement alongside CoreWeave’s third-quarter financial results later this year. A spokesperson described the deal as reflecting scale, trust, and its critical role in advancing global artificial intelligence innovation.
What is CoreWeave?
Founded in 2017 as Atlantic Crypto, CoreWeave first operated as a cryptocurrency miner using graphics processing units (GPUs). It later shifted towards high-performance computing and artificial intelligence (AI) cloud infrastructure, while also developing its own chip management software.
CoreWeave has emerged as a world-leading cloud partner within the highly competitive, continuously expanding AI industry. The firm operates large data centres across the US and Europe specifically designed for AI workloads.
Some are dedicated to multiple companies while others have been established to meet the needs of a single client. Its $1.6 billion data centre for Nvidia in Plano, Texas currently houses one of the fastest AI supercomputers in the world.
Meanwhile, earlier this year it signed a five-year contract worth up to $11.9 billion with OpenAI, maker of ChatGPT. Tech giants Microsoft and Google have also counted on CoreWeave for additional computing power, indicating strong demand for its services.
CoreWeave’s strong partnership with Nvidia
CoreWeave has built a deep, long-term partnership with Nvidia that goes beyond a standard business relationship. Nvidia is not only a key technology provider but also an investor with a significant equity stake in CoreWeave, such is the depth of their collaboration.
Nvidia owned about 7% of CoreWeave’s Class A shares, according to filings with the US Securities and Exchange Commission (SEC) in June. It has also provided strong operational support, with CoreWeave’s chief executive maintaining direct contact with Nvidia’s leadership.
The company rents out access to Nvidia’s powerful GPUs, which customers use to train and run large artificial intelligence models. Following this latest deal, investors will be reassured about CoreWeave’s ability to fill growing data centre capacity beyond its existing customer base.
For Nvidia, whose shares declined yesterday after China accused it of breaking anti-monopoly laws, the agreement secures access to additional GPU resources. As for CoreWeave, it reduces revenue risk, while strengthening its position as a vital partner within the AI infrastructure market.
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