Shares of CoreWeave (CRWV +5.70%) popped on Monday after the data center developer deepened its strategic collaboration with global semiconductor giant Nvidia (NVDA 0.64%).
By the close of trading, CoreWeave's stock price was up more than 5% after rising as much as 17% earlier in the day.
Image source: Getty Images.
Nvidia's sizable investment in CoreWeave
Nvidia purchased a $2 billion stake in CoreWeave at $87.20 per share, a discount of about 6% to the stock's closing price on Friday.
"The investment reflects Nvidia's confidence in CoreWeave's business, team, and growth strategy," the companies said in a press release.
NASDAQ: CRWV
Key Data Points
CoreWeave's tech platform helps businesses scale their artificial intelligence (AI) operations by enabling its customers to run machine learning workloads more efficiently.
"CoreWeave's deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry," Nvidia CEO Jensen Huang said.
Accelerating the AI boom
CoreWeave will use the funds to quicken the development of 5 gigawatts of AI factories by 2030 to help satisfy the surging demand for accelerated computing services. A gigawatt of energy can power as many as 750,000 homes.
"AI is entering its next frontier and driving the largest infrastructure buildout in human history," Huang said.
The two companies will also take steps to better integrate CoreWeave's AI software with Nvidia's chips and storage systems.
"From the very beginning, our collaboration has been guided by a simple conviction: AI succeeds when software, infrastructure, and operations are designed together," CoreWeave CEO Michael Intrator said.
