Nvidia has injected another $2 billion into CoreWeave, purchasing Class A shares at $87.20 each and nearly doubling its stake to become the second-largest shareholder. The investment supports CoreWeave’s target of deploying over 5 gigawatts of data-center capacity by 2030, a scale that demands continuous capital. The AI cloud provider went public in March 2025 at a $23 billion valuation after cutting its IPO price range, raising $1.5 billion instead of the planned $4 billion. Nvidia anchored that offering with a $250 million order.

CoreWeave’s customer base now includes Meta, which signed a $21 billion expansion through 2032, and OpenAI with a $22.4 billion pact. Revenue hit $981 million in Q1 2025, up 420% year-over-year, but adjusted losses widened to $150 million. The company’s debt burden remains heavy: an $8.5 billion GPU-collateralized loan backed by Meta’s contract closed in March, and capital expenditure of $20-23 billion is planned for 2025 alone.

Nvidia rents back capacity from CoreWeave, including a $6.3 billion order signed in 2025 that allows redirects to other customers. CEO Jensen Huang dismisses circularity concerns, noting Nvidia’s investment is small relative to CoreWeave’s total capital needs. Jane Street recently committed $6 billion for cloud services and invested $1 billion at $109 per share, becoming the fifth-largest shareholder.

Risks center on revenue concentration—Microsoft accounted for 62% of CoreWeave’s 2024 revenue but skipped a $12 billion option in 2025—and whether the company can diversify beyond its largest customers. Analysts project 2026 revenue between $10.9 and $14.9 billion, with a backlog exceeding $67 billion. Shares trade near $110, up from the $40 IPO price but volatile. CoreWeave operates 32 data centers with over 250,000 GPUs and was first to deploy Nvidia’s GB200 NVL72 system. The question remains whether this model scales without endless borrowing.

Source: Webpronews