CoreWeave stock surges amid fresh $2 billion investment from Nvidia

• By Laura Bratton
• Tue, Jan 27
• 1452
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Shares of AI cloud provider CoreWeave surged nearly 6% Monday after Nvidia announced it will invest an additional $2 billion in the company to expand AI infrastructure capacity.

The investment is aimed at helping CoreWeave build more than five gigawatts of AI factory capacity by 2030. The companies will collaborate to enhance CoreWeave’s AI-native software, and CoreWeave will deploy "multiple generations" of Nvidia’s AI systems.

“AI is entering its next frontier and driving the largest infrastructure buildout in human history,” said Nvidia founder and CEO Jensen Huang in a statement.

The latest commitment adds to Nvidia’s existing $3.3 billion stake in CoreWeave, part of the chipmaker’s strategic investments in "neocloud" companies specializing in AI cloud services. This circular funding model—where Nvidia invests in its own customers—has sparked debate on Wall Street about potential overvaluation in the AI sector.

CoreWeave, whose major clients include Microsoft, Meta, and Alphabet, has seen its stock rise 138% over the past year and nearly 16% this month alone.

Nvidia shares dipped slightly Monday but remain up 27% over the past year, despite recent volatility linked to uncertainty over its China business and geopolitical tensions.

• Tags
• Technology
• AI
• Nvidia
• CoreWeave
• Investment