NEW YORK (Reuters) – CoreWeave, a data center operator specializing in AI infrastructure, announced a $6.3 billion order with Nvidia on Monday, securing a commitment from the chipmaker to purchase any unused cloud computing capacity. The deal sent CoreWeave shares up 6.9% in early trading.
This agreement underscores the escalating demand for AI processing power and the strategic importance of securing access to advanced GPU resources. It provides CoreWeave with a financial safety net while ensuring Nvidia maintains a strong position in the rapidly growing AI market. The arrangement builds upon an existing partnership between the two companies, formalized in an agreement reached in April 2023.
Under the terms of the order, Nvidia will purchase any residual cloud capacity from CoreWeave that isn’t sold to customers through April 13, 2032. CoreWeave operates AI data centers across the U.S. and Europe, providing access to Nvidia’s sought-after GPUs, essential for developing and deploying large-scale AI models.
The deal offers CoreWeave a guaranteed revenue stream and mitigates the risk of underutilized infrastructure, while allowing Nvidia to further integrate its technology into a key cloud provider’s ecosystem.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Sriraj Kalluvila)
