Nvidia has announced a massive $2 billion investment in CoreWeave, the cloud computing company specializing in AI infrastructure, marking a significant expansion of their strategic partnership. The deal, announced Monday, involves Nvidia purchasing CoreWeave stock at $87.20 per share, sending CoreWeave’s share price up nearly 10% in premarket trading.
The partnership centers on building “AI factories” - large-scale data centers designed specifically for artificial intelligence workloads. CoreWeave aims to accelerate its infrastructure buildout to reach 5 gigawatts of capacity by 2030, a substantial increase that would position the company as a major player in the AI cloud computing space.
Michael Intrator, CoreWeave’s cofounder, chairman, and CEO, emphasized the collaborative nature of the partnership: “From the very beginning, our collaboration has been guided by a simple conviction: AI succeeds when software, infrastructure, and operations are designed together.” This statement underscores the integrated approach both companies are taking to AI infrastructure development.
This isn’t Nvidia’s first investment in CoreWeave. The GPU giant initially invested approximately $100 million in the company back in 2023, then acquired additional shares around the time of CoreWeave’s IPO in March 2025. This latest $2 billion investment represents a significant escalation of Nvidia’s commitment to the cloud infrastructure provider.
CoreWeave specializes in building data centers packed with graphics processing units (GPUs), the specialized AI chips that have become essential for training and running large language models and other AI applications. The company’s business model focuses on providing cloud-based access to these expensive computing resources, making AI development more accessible to companies that can’t afford to build their own infrastructure.
However, the deepening relationship has raised industry concerns about circular AI deals. Nvidia both invests in CoreWeave as a shareholder and sells its chips to the company as a supplier, creating a complex financial relationship that some observers view as potentially problematic. This dynamic has contributed to broader scrutiny of how AI infrastructure investments are structured and whether they create conflicts of interest or artificially inflate demand for AI hardware.
Key Quotes
From the very beginning, our collaboration has been guided by a simple conviction: AI succeeds when software, infrastructure, and operations are designed together.
Michael Intrator, CoreWeave’s cofounder, chairman, and CEO, explained the philosophy behind the partnership in a press release. This statement emphasizes the integrated, holistic approach both companies are taking to AI infrastructure development, suggesting that success requires coordination across multiple layers of the technology stack.
Our Take
Nvidia’s $2 billion bet on CoreWeave reveals a strategic shift from simply selling chips to vertically integrating across the AI value chain. By investing heavily in infrastructure providers, Nvidia ensures demand for its GPUs while gaining influence over how AI computing capacity is deployed. This move mirrors historical patterns in technology where dominant hardware providers sought to control adjacent markets.
The circular deal concerns are legitimate but may be overstated. While Nvidia benefits from both equity appreciation and chip sales, CoreWeave gains access to capital and preferential access to scarce GPU supply. In a market constrained by chip availability, these relationships may be necessary for rapid infrastructure scaling. The real question is whether this consolidation ultimately benefits or harms the broader AI ecosystem’s competitiveness and innovation potential.
Why This Matters
This $2 billion investment represents a critical development in the AI infrastructure race, as major technology companies compete to secure computing capacity for increasingly demanding AI workloads. Nvidia’s deepening partnership with CoreWeave signals the chipmaker’s strategy to control not just the hardware layer but also the infrastructure that powers AI applications.
The deal highlights the massive capital requirements for building AI infrastructure at scale. CoreWeave’s goal of 5 gigawatts by 2030 would require billions in investment, and Nvidia’s backing provides both financial resources and strategic validation. For businesses developing AI applications, this expansion promises more available computing capacity, potentially lowering costs and improving access to GPU resources.
However, the circular nature of these deals raises important questions about market dynamics and competition. When chip manufacturers invest heavily in their own customers, it creates complex incentives that may not always align with broader market efficiency. This trend could lead to increased regulatory scrutiny as policymakers examine whether such arrangements create unfair competitive advantages or distort the AI infrastructure market.
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Source: https://www.businessinsider.com/nvidia-buys-2-billion-coreweave-stock-ai-partnership-2026-1