Nvidia Commits to $6.3 Billion CoreWeave Cloud Order
CoreWeave stock surges nearly 8% after revealing a massive $6.3 billion order from Nvidia to purchase unsold cloud capacity through 2032. The deal highlights the deep financial ties between the AI infrastructure provider and its primary chip supplier.
CoreWeave shares jump almost 8% after the AI cloud infrastructure provider reveals a massive order from Nvidia worth at least $6.3 billion. Under the terms of the deal, Nvidia is obligated to purchase any residual unsold capacity from CoreWeave through April 2032. CoreWeave plans to release the full agreement alongside its upcoming third-quarter financial results.
This arrangement highlights the deeply intertwined relationship between the two companies, as CoreWeave relies entirely on Nvidia GPUs to power its rented cloud infrastructure. Nvidia currently owns about 7% of CoreWeave's Class A shares, making it a significant financial backer since CoreWeave went public in March. Major tech companies like Microsoft and Google also turn to CoreWeave for extra computing power to meet soaring AI demand.
Despite reporting a net loss of $290.5 million in the second quarter, CoreWeave shows explosive revenue growth of 207% year over year, reaching $1.21 billion. The company also secures massive contracts from other AI heavyweights, including a separate $11.9 billion five-year deal with OpenAI. Following this latest Nvidia disclosure, CoreWeave stock triples from its IPO price and pushes the company's market valuation past $58 billion.