This article first appeared on GuruFocus.
CoreWeave (NASDAQ:CRWV) shares jumped about 10% early Monday after Nvidia (NASDAQ:NVDA) agreed to invest roughly $2 billion in the cloud infrastructure company, deepening a long-running partnership focused on artificial intelligence computing.
Nvidia will buy newly issued Class A shares of CoreWeave at $87.20 each as part of a broader commercial deal tied to expanding large-scale AI data center capacity. The move values the transaction at about $2 billion and lifts CoreWeave’s market profile within the AI infrastructure space.
Under the expanded collaboration, the two companies plan to accelerate the buildout of more than five gigawatts of so-called AI factories by the end of the decade. CoreWeave will lead site development and operations, while Nvidia is expected to support early spending on land, power access, and core facilities.
The partnership also includes joint testing of CoreWeave’s AI-focused software and system designs, with the goal of folding select tools into Nvidia’s reference architectures for cloud and enterprise customers.
CoreWeave will deploy multiple generations of Nvidia hardware across its platform, including newer computing and networking systems, as it scales capacity to meet rising demand for AI workloads.