• Nvidia invests $2 billion in CoreWeave to enhance AI infrastructure.
• The partnership aims to build over 5 gigawatts of AI data centers by 2030.
• CoreWeave shares surged nearly 10% in premarket trading after the announcement.
• Nvidia will also assist with land and power procurement for data centers.
• The investment signifies Nvidia's confidence in CoreWeave's growth strategy.

Nvidia has invested $2 billion in CoreWeave, purchasing shares at $87.20 each, to bolster the company’s efforts in establishing over 5 gigawatts of AI data center capacity by 2030. This partnership is set to expedite the construction required for CoreWeave's ambitious plans, signifying Nvidia's increased stake in AI infrastructure as demand escalates with enterprise adoption, according to Reuters, aa, and Los Angeles Times.

The CEO of Nvidia, Jensen Huang, noted, “AI is entering its next frontier and driving the largest infrastructure buildout in human history.” He emphasized that the investment reflects Nvidia’s faith in CoreWeave’s management and growth strategy, aligning both companies’ engineering efforts to bring their computing capacity online more effectively, as reported by Reuters and aa.

CoreWeave, known as a “neocloud,” is focusing on building and renting out data centers equipped with Nvidia’s GPUs, which are vital for handling large AI workloads. Following the announcement of the investment, CoreWeave’s shares experienced a surge of approximately 9% during premarket trading, highlighting investor optimism regarding the expanded collaboration, according to Los Angeles Times and aa.

Nvidia previously secured agreements to purchase over $6 billion in services from CoreWeave, and as part of this ongoing collaboration, they will provide support for CoreWeave's land and power needs essential for their data centers. This partnership sets the stage for CoreWeave to deploy future Nvidia products, enhancing their operational capabilities in the burgeoning AI sector, as indicated by Reuters and Los Angeles Times.

The investment highlights Nvidia’s aggressive strategy to propel the AI industry by deepening ties with crucial infrastructure providers like CoreWeave. As Nvidia prepares for the launch of its new CPU, called Vera, it aims to expand its competitive landscape within data centers, which marks a significant shift towards directly challenging established players in the CPU market, according to Los Angeles Times.