CoreWeave and Nvidia sign $6.3 billion cloud capacity deal
CoreWeave has signed a $6.3 billion initial order with long-time backer Nvidia, the data center operator announced Monday. The deal guarantees that Nvidia will purchase any unsold cloud capacity from CoreWeave through April 13, 2032, providing a major safety net for the New Jersey-based company as it expands its AI infrastructure.
Shares of CoreWeave rose 8% following the announcement, reflecting investor confidence in the company’s reinforced position as a key Nvidia cloud partner. Analysts noted the agreement helps cushion CoreWeave against potential slowdowns in demand for AI computing capacity, while also broadening Nvidia’s customer base beyond its largest partners.
“The amended agreement serves as a backstop for CoreWeave, ensuring capacity will be leveraged irrespective of the end customer,” Barclays analysts wrote, calling the spending “a healthy diversification” for Nvidia.
CoreWeave operates AI-focused data centers in the U.S. and Europe, offering customers access to Nvidia’s GPUs, which remain in high demand for training and deploying advanced AI models. The new order builds on a prior agreement from April 2023.
The deal comes amid CoreWeave’s rapid growth fueled by AI adoption. In March, the company struck an $11.9 billion, five-year contract with OpenAI to provide cloud capacity for ChatGPT, followed by an additional commitment under which OpenAI agreed to pay up to $4 billion through 2029.
While revenue has surged, CoreWeave’s expenses are also mounting. In August, the company reported that operating costs had nearly quadrupled to $1.19 billion in the second quarter, underscoring the financial pressures of scaling up to meet AI-driven demand.
The latest Nvidia commitment helps address investor concerns about CoreWeave’s reliance on major clients like Microsoft and OpenAI. With Nvidia now acting as both partner and guaranteed buyer, CoreWeave appears well-positioned to ride the accelerating AI infrastructure wave—though managing costs will remain a critical challenge.
