Nvidia invests $2B to help debt-ridden CoreWeave add 5GW of AI compute

Nvidia has announced a substantial $2 billion investment in CoreWeave, aimed at accelerating the company’s ambitious plan to enhance its AI computing capacity by over 5 gigawatts by 2030. As an existing investor in CoreWeave, Nvidia has acquired Class A shares at a price of $87.20 each. This partnership will see the creation of 'AI factories,' or data centers, which will utilize Nvidia's advanced technology. CoreWeave plans to incorporate Nvidia's new Rubin chip architecture—set to succeed the existing Blackwell architecture—as well as Bluefield storage systems and the latest CPU line, Vera, across its platform. CoreWeave has faced scrutiny in recent months due to its substantial debt, totaling $18.81 billion as of September 2025. Despite this, the company reported a revenue of $1.36 billion in the third quarter. CEO Michael Intrator has defended the company’s approach of financing operations through debt, utilizing its GPUs as collateral. He emphasized the importance of collaboration within the AI sector to address the dramatic shifts in supply and demand. Having transitioned from a cryptocurrency mining operation to a provider of AI data center services, CoreWeave has successfully capitalized on the growing demand for AI solutions. Since its IPO in March of last year, it has expanded its technological capabilities through numerous acquisitions, including the AI development platform Weights & Biases and the reinforcement learning startup OpenPipe. Recently, it also agreed to acquire Marimo and Monolith, further solidifying its position in the AI landscape. The company currently serves several major clients, such as OpenAI, Meta, and Microsoft. As part of the investment agreement, Nvidia will assist CoreWeave in acquiring land and securing power for its data centers. Additionally, they will collaborate to integrate AI software and architecture into Nvidia’s reference architecture, catering to cloud businesses and enterprises. Following the announcement of this investment, CoreWeave's share price surged by over 15%. For Nvidia, this latest investment is part of a broader strategy to sustain the rapid pace of growth and innovation in the AI sector.