CRWV Stock Soars 10% Pre-Market As Nvidia Invests $2B To Expand AI Factory Network

• CoreWeave will use Nvidia’s high-performance computing platform to design and operate AI factories.
• The firm will test and validate its AI-native software and reference architectures, including SUNK and CoreWeave Mission Control.
• CoreWeave will adopt multiple generations of Nvidia technology, including the Rubin platform and Vera CPUs.

NVIDIA (NVDA) and CoreWeave, Inc. (CRWV) announced on Monday an expansion of their ongoing collaboration to scale artificial intelligence infrastructure globally, with the former purchasing $2 billion worth of the latter’s Class A common stock at $87.20 per share. 

The partnership aims to accelerate the development of more than 5 gigawatts of AI factories by 2030.

Scaling AI Infrastructure

CoreWeave will use Nvidia’s high-performance computing platform to design and operate AI factories that address the rapidly growing demand for AI compute power. 

Following the announcement, CoreWeave’s stock surged over 10% in Monday’s premarket, while that of Nvidia inched 0.6% lower. On Stocktwits, retail sentiment around CoreWeave changed to ‘bullish’ from ‘neutral’ territory amid ‘normal’ message volume. 

The companies plan to use Nvidia’s financial resources to accelerate the acquisition of land, utilities, and infrastructure necessary for factory construction.

Software And Platform Integration

As part of the collaboration, CoreWeave will test and validate its AI-native software and reference architectures, including SUNK and CoreWeave Mission Control, to enhance interoperability. These tools may be included in Nvidia’s reference architectures for enterprise and cloud clients.

“CoreWeave’s deep AI factory expertise, platform software, and unmatched execution velocity are recognized across the industry. Together, we’re racing to meet extraordinary demand for NVIDIA AI factories — the foundation of the AI industrial revolution.” 

-Jensen Huang, Founder, CEO, Nvidia 

CoreWeave will adopt multiple generations of Nvidia technology, including the Rubin platform, Vera CPUs, and Bluefield storage systems. Nvidia, which already holds a stake in CoreWeave, had earlier committed to purchasing over $6 billion in services from the company through 2032.

CRWV stock has gained over 132% in the last 12 months. 

Also See: META Stock Gets ‘Buy’ Upgrade: Rothschild Redburn Lifts Price Target To $900 Ahead Of Earnings

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