Nvidia Commits to Multi-Billion Dollar Capacity Agreement
CoreWeave (CRWV) shares surged up to 8% after the cloud infrastructure firm disclosed a $6.3 billion order from Nvidia. The agreement stems from a 2023 arrangement under which Nvidia is obligated to purchase CoreWeave’s unsold compute capacity through April 2032, according to a regulatory filing released Monday.
A copy of the full agreement will be included in CoreWeave’s upcoming Q3 financial report.
Strategic Dependence Turns Into Market Validation
Backed by Nvidia, which owns about 7% of CoreWeave’s Class A shares, the company has built a business around renting out GPU-heavy infrastructure for AI workloads. The disclosure confirms Nvidia’s continued support as both an investor and strategic partner in the AI cloud space.
In its March IPO prospectus, CoreWeave acknowledged a significant dependency on Nvidia chips. The company relies almost exclusively on Nvidia GPUs to power its platform, a common theme across AI-focused cloud providers, including Amazon, Microsoft, Google, and Oracle.
Google and Microsoft have recently turned to CoreWeave to meet rising demand for GPU-based compute power.
Growth at Scale Despite Losses
CoreWeave’s business is scaling rapidly. In Q2, it reported $1.21 billion in revenue—a 207% year-over-year increase—but still posted a net loss of $290.5 million. Despite the red ink, market interest remains high.
Earlier this year, CoreWeave landed an $11.9 billion, five-year contract with OpenAI, further strengthening its enterprise pipeline.
With Monday’s rally, CoreWeave’s stock has now tripled since going public in March. The company’s market capitalization has surged past $58 billion, underscoring investor belief in its long-term relevance to the AI infrastructure economy.
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Final Take: CoreWeave Strengthens Grip on AI Cloud Infrastructure
The $6.3 billion Nvidia order is more than a revenue driver—it’s a validation of CoreWeave’s positioning as a cornerstone in the AI cloud supply chain. As enterprise AI adoption accelerates, CoreWeave is becoming a central player in providing the compute backbone tech giants rely on.
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Always consult a licensed advisor before making investment decisions.
