Nvidia has increased its investment in CoreWeave by $2 billion, raising its stake to 11.5%. This move enhances Nvidia’s backing for CoreWeave, a company specializing in data centers for AI applications, which has secured contracts worth $55.6 billion. The investment allows CoreWeave access to Nvidia’s advanced GPU technology, which positions it favorably in the rapidly growing AI sector.
CoreWeave plans to use the new funds to accelerate its buildout of 5 gigawatts of AI data centers by 2030. However, significant challenges remain, as the company reported $1.9 billion in capital expenditures during the third quarter and accumulated $841.4 million in interest expenses, a substantial increase from the previous year. Operating income fell sharply to $43.6 million, highlighting the financial strain as CoreWeave takes on additional debt to finance its expansion.
