CoreWeave Secures $6.3 Billion Deal with Nvidia, Strengthening AI Cloud Infrastructure

CoreWeave, Nvidia sign $6.3 billion cloud computing capacity order

Sept 15 (Reuters) - CoreWeave (CRWV.O), opens new tab has signed a $6.3 billion initial order with backer Nvidia (NVDA.O), opens new tab, the data center operator said on Monday, in a deal that guarantees that the AI chipmaker will purchase any cloud capacity not sold to customers. Shares of CoreWeave rose 8% as the deal cements the company's position as a key Nvidia cloud partner and cushions it against any potential decline in demand for AI computing capacity. CoreWeave operates AI data centers in the U.S. and Europe, offering access to Nvidia's GPUs, which are highly sought after for training and running large AI models. The latest order, which requires Nvidia to purchase any unsold capacity through April 13, 2032, builds on an April 2023 agreement. The amended agreement serves as a backstop for CoreWeave, ensuring that capacity will be leveraged irrespective of the end customer, analysts at Barclays said, adding that the incremental spending by Nvidia is seen as a healthy diversification away from the company's largest customers. "We see this as a positive for CoreWeave given concerns from investors around the company's ability to fill data center capacity beyond its two largest customers (Microsoft and OpenAI)." In March, CoreWeave and OpenAI agreed on a five-year contract worth $11.9 billion, under which the New Jersey-based firm provides the ChatGPT maker cloud computing capacity. The company signed an additional agreement under which OpenAI has committed to pay up to $4 billion through April 2029. CoreWeave in August reported a surge in demand for its cloud services in the second quarter, amid the rapid adoption of artificial intelligence tools. However, operating expenses jumped nearly fourfold to $1.19 billion, highlighting the strain that rapid revenue growth is placing on its finances. Reporting by Harshita Mary Varghese in Bengaluru; Editing by Sriraj Kalluvila Our Standards: The Thomson Reuters Trust Principles., opens new tab

CoreWeave's stock rallies on disclosure of $6.3 billion order from Nvidia

From left, Advanced Micro Devices CEO Lisa Su and CoreWeave CEO Michael Intrator testify before the Senate Committee on Commerce, Science, and Transportation in Washington on May 8, 2025. The tech leaders testified about the global artificial intelligence race and where the United States can remain competitive. CoreWeave shares jumped as much as 8% on Monday after the provider of cloud infrastructure for artificial intelligence workloads disclosed an order worth at least $6.3 billion from Nvidia. Under the terms of the arrangement, Nvidia "is obligated to purchase the residual unsold capacity" through April 2032, CoreWeave said in a filing. The company said it plans to include a copy of the full agreement alongside its third-quarter financial results. CoreWeave already spends heavily on hundreds of thousands of Nvidia graphics processing units (GPUs), which it then rents out to clients. The company, which went public in March, is backed by Nvidia, owner of about 7% of CoreWeave's Class A shares as of June 30. Mike Intrator, CoreWeave's CEO, said in a March interview thhat he's "not bashful" about reaching out to Nvidia CEO Jensen Huang. In its IPO prospectus, CoreWeave warned that it's dependent on a limited number of suppliers, and all of the GPUs in its infrastructure at the time had come from Nvidia. Cloud providers Amazon, Google, Microsoft and Oracle also rely on Nvidia for chips to help them meet AI demand. Google and Microsoft have both turned to CoreWeave for additional capacity. In August, CoreWeave reported $1.21 billion in second-quarter revenue, up 207% year over year. The company has continued to lose money, recording a $290.5 million net loss in the period. While CoreWeave is largely reliant on Nvidia chips for its business, the company has other large customers when it comes to compute capacity. Earlier this year, CoreWeave secured a contract with OpenAI that's worth $11.9 billion over five years. With Monday's rally, CoreWeave shares have tripled since their IPO, and the company is now valued at over $58 billion.

CoreWeave Stock Pops on $6.3B Nvidia Deal

Separately, on Monday, Deutsche Bank added CoreWeave to its Catalyst Call Buy Idea List, citing "a few positive factors" that will support revenue revisions upward over the next quarter or two. CoreWeave (CRWV) said Monday it has signed a $6.3 billion initial order with Nvidia (NVDA) with a condition that the AI chip star buys unsold capacity, sending shares in the cloud computing platform surging. As part of the deal, Nvidia is obligated to buy any unsold cloud-computing capacity through April 13, 2032, if CoreWeave's data centers aren't fully utilized by its own customers. CoreWeave made the announcement in a filing with the Securities and Exchange Commission and said the deal was struck on Sept. 9. Nvidia has ties with CoreWeave on several fronts. Apart from being a customer, Nvidia sells its chips to CoreWeave and has a stake in the cloud platform. Apart from Nvidia, CoreWeave's customers include Microsoft (MSFT), OpenAI, and Facebook parent Meta Platforms (META). Separately, on Monday, Deutsche Bank added CoreWeave to its Catalyst Call Buy Idea List, citing "a few positive factors" that will support revenue revisions upward over the next quarter or two. CoreWeave will benefit as "spending intentions being signaled by those in industry and the scale of some of the recent contract announcements make demand for AI infrastructure appear almost insatiable and at least for the near-to-medium-term, demand significantly outstrips supply," wrote analyst Brad Zelnick. CoreWeave shares are rising almost 7% in intraday trading Monday and have gained more than 200% since going public in March this year in one of 2025's hottest IPOs.

Investors Should Ask: Who Wins More From This $6.3 Billion CoreWeave-Nvidia Agreement? | The Motley Fool

CoreWeave (CRWV 2.86%) just announced that it has landed an order from AI chip giant Nvidia (NVDA 0.34%) worth at least $6.3 billion. The deal obligates Nvidia to purchase its residual unsold capacity until April 13, 2032, if it is not already purchased by CoreWeave's customers. CoreWeave is a longtime Nvidia client. It has purchased hundreds of thousands of GPUs, which CoreWeave rents out to clients. With the agreement, CoreWeave gains an additional revenue source. Still, investors need to remember that the spare capacity was valuable enough to pay CoreWeave $6.3 billion, raising questions about which company will reap the greater benefit. Thus, investors should take a closer look at the deal to see whether CoreWeave or Nvidia benefits more. CoreWeave obviously benefits from the deal since it has a guaranteed customer, and it will receive $6.3 billion in revenue over the length of the agreement. But understanding the benefit fully means knowing what CoreWeave offers to the market. CoreWeave is an artificial intelligence (AI) based cloud computing company. It differs from cloud providers like Amazon's AWS as it builds servers specifically for workloads related to AI, machine learning, high-performance computing, and visual effects. It also provides customers with the latest hardware, can handle heavy workloads at lower costs, and its per-instance pricing allows customers to manage their costs more closely. Such an approach makes CoreWeave valuable to the AI industry, but it can also leave it with unused capacity. Nvidia's move to claim that spare capacity should therefore provide CoreWeave with some degree of stability. Knowing that, investors should note where CoreWeave stands financially. Its $58 billion market cap is a tiny fraction of Nvidia's $4.25 trillion size. Also, even though CoreWeave's revenue of $2.2 billion in the first half of 2025 grew by 275% yearly, it still lost $605 million during that time. Such losses mean it will likely have to turn to capital markets to raise funds. That need is even more acute because it pledged to spend between $20 billion and $23 billion in capital expenditures (capex) in 2025 alone. So it needs deals like the one with Nvidia so it can recoup its capex investments and eventually grow into a profitable operation. What may confuse investors is how the deal helps Nvidia. Even though Nvidia and CoreWeave are close partners, CoreWeave's business requires it to purchase Nvidia's latest AI accelerators. But investors may not understand why it chose to spend $6.3 billion to help this particular customer. For one, Nvidia owns 24.3 million shares of CoreWeave as of June 30, about 5% of the outstanding shares. The agreement goes a long way toward solidifying Nvidia's investment and the relationship between the two companies. Intense demand for AI has led to a shortage of cloud capacity, so this deal also gives Nvidia a claim over a scarce commodity. Thanks to this deal, Nvidia will have to rely less on large cloud providers like Amazon and Microsoft, giving it more control over its destiny in this regard. Furthermore, having CoreWeave in a more solid financial position means CoreWeave will more likely meet the aforementioned goals on capex spending. With that, it will spend more on Nvidia GPUs, helping to boost the size and expanse of the AI ecosystem over which it has considerable control. What may look like charity to CoreWeave will likely serve Nvidia's interests in the end. This deal will probably benefit both companies, although CoreWeave is likely to derive more benefit, at least from an investor perspective. Nvidia may benefit more in an abstract sense, as it gains influence over the AI ecosystem. Nvidia's larger size also makes it a safer investment, a welcome relief to investors who feel uncomfortable buying into a money-losing company spending heavily on capex. Still, the Nvidia deal offers a considerable boost to CoreWeave's top line. This makes it more likely that CoreWeave's massive spending will ultimately deliver positive returns for the company. CoreWeave's much smaller size also means it can attain higher percentage growth from a much smaller base. The doubling of CoreWeave's value takes its market cap to $116 billion. The same percentage move would take Nvidia's market cap to $8.5 trillion, a challenging feat in a market that has yet to see a company with a $5 trillion market cap. In the end, CoreWeave comes with higher risks than Nvidia. However, if you are willing to take a chance, CoreWeave offers greater potential for higher-percentage returns.

After Its New $6.3 Billion Deal With Nvidia, Is It Finally Time to Buy CoreWeave Stock? | The Motley Fool

The artificial intelligence (AI)-centric cloud platform represents an intriguing opportunity. The advent of artificial intelligence (AI) has changed the face of technology, and that shift is ongoing. Nvidia (NVDA -2.62%) became the market's first AI darling, as its graphics processing units (GPUs) quickly became the gold standard for running AI models and speeding data through the ether. It has soared more than 1,100% since early 2023 (as of this writing), and the stock remains within striking distance of a new all-time high. During that same period, Nvidia's revenue jumped 673%, driving net income up 1,770%. Those blistering results have attracted the attention of the tech world, with many companies scrambling to get a share of the AI windfall. However, the unrelenting demand for AI-capable chips and limited production capacity led to a shortage of top-shelf GPUs that continues to this day. This presented an intriguing opportunity for the rise of CoreWeave (CRWV 1.67%), which provides cloud-based AI resources for customers. The neocloud provider just deepened its already strong relationship with Nvidia. That, combined with the recent correction in its share price, has some investors wondering whether it's finally time to buy CoreWeave stock. Let's see what the evidence suggests. Cloud computing entered the mainstream more than 20 years ago, giving users online access to software applications, data storage, and data processing. As I've previously written, "The flexibility, improved security, and ability to scale offered by the cloud make it an attractive choice for many businesses. Furthermore, most AI processing takes place in the cloud, which has spurred even greater adoption." The advent of AI fueled the rise of the neocloud. These specialized providers are largely focused on GPU-as-a-service (GPUaaS) and AI-as-a-Service (AIaaS), and CoreWeave is widely regarded as the largest and most dominant of the neocloud set. One of CoreWeave's biggest advantages is the company's close ties to Nvidia. The strategic partnership gives CoreWeave early access to Nvidia's latest and greatest offerings, allowing it to capitalize on the ongoing demand for AI processing. The relationship goes further, however, as Nvidia owns a roughly 5% stake in CoreWeave, amounting to nearly 24.3 million shares worth more than $2.86 billion (as of this writing). It also ranks as Nvidia's largest equity holding, representing 91% of the company's portfolio at the end of the second quarter. The pair has recently taken their relationship to the next level. In a regulatory filing that dropped September 9, CoreWeave announced an agreement initially worth $6.3 billion, saying that it would provide Nvidia with "access to any residual unsold cloud computing capacity," with Nvidia on the hook to purchase unused capacity until 2032. In a statement about the deal, Nvidia pointed to the "long lead times and four to six year customer commitments" as the logic behind the deal. "To support start-ups and small to mid-sized companies, Nvidia and CoreWeave are proactively building data center infrastructure and provisioning data center capacity to meet evolving capital needs," a Nvidia spokesperson said. Put another way, this deal gives CoreWeave investors the assurances of a guaranteed revenue stream for the next seven years. CoreWeave's results paint a compelling picture. In the second quarter, revenue of $1.21 billion surged 207% year over year, resulting in a loss per share of $0.60, which improved 63%. For context, Wall Street was expecting revenue of $1.08 billion, so CoreWeave surpassed expectations with room to spare. Equally as important was the company's remaining performance obligation (RPO) -- or contractually obligated sales not yet included in revenue -- which soared 86% year over year to $30.1 billion, illustrating the strong demand that remains. In fact, CFO Nitin Agrawal confirmed on the earnings call that demand continues to outstrip supply. CoreWeave also expanded its existing relationship with OpenAI, striking a new $4 billion deal, beyond the previously announced $11.9 billion contract. The company continues to ramp its investments in data center and server infrastructure to meet the "unprecedented" demand. CoreWeave had been on fire since its late-March initial public offering (IPO), with the stock soaring as much as 359% before gravity finally brought it back to earth. Concerns about the ongoing demand for AI, CoreWeave's high valuation, and the company's ongoing losses sent the stock lower, which now sits 35% below its peak, while still sporting gains of 197%. On the bright side, CoreWeave's valuation is much more reasonable than it was just three months ago, selling for 13 times sales. While some might view this as a premium, I would argue it's an attractive valuation for a high-growth company with a well-heeled benefactor and a long runway for growth ahead.

CoreWeave, Nvidia sign US$6.3 billion cloud computing capacity order

CoreWeave has signed a $6.3 billion initial order with backer Nvidia, the data center operator said on Monday, in a deal that guarantees that the AI chipmaker will purchase any cloud capacity not sold to customers. Shares of CoreWeave rose 8 per cent as the deal cements the company's position as a key Nvidia cloud partner and cushions it against any potential decline in demand for AI computing capacity. CoreWeave operates AI data centers in the U.S. and Europe, offering access to Nvidia's GPUs, which are highly sought after for training and running large AI models. The latest order, which requires Nvidia to purchase any unsold capacity through April 13, 2032, builds on an April 2023 agreement. The amended agreement serves as a backstop for CoreWeave, ensuring that capacity will be leveraged irrespective of the end customer, analysts at Barclays said, adding that the incremental spending by Nvidia is seen as a healthy diversification away from the company's largest customers. "We see this as a positive for CoreWeave given concerns from investors around the company's ability to fill data center capacity beyond its two largest customers (Microsoft and OpenAI)." In March, CoreWeave and OpenAI agreed on a five-year contract worth $11.9 billion, under which the New Jersey-based firm provides the ChatGPT maker cloud computing capacity. The company signed an additional agreement under which OpenAI has committed to pay up to $4 billion through April 2029. CoreWeave in August reported a surge in demand for its cloud services in the second quarter, amid the rapid adoption of artificial intelligence tools. However, operating expenses jumped nearly fourfold to $1.19 billion, highlighting the strain that rapid revenue growth is placing on its finances.

Coreweave CFO Agrawal sells $4.5 million in shares By Investing.com

Coreweave, Inc. (06 Technology:CRWV), a $62.66 billion market cap technology company, saw its Chief Financial Officer Nitin Agrawal sell 38,002 shares of Class A Common Stock on September 16, 2025, according to a Form 4 filing with the Securities and Exchange Commission. The company's stock has shown remarkable strength, gaining over 200% in the past six months, though InvestingPro analysis suggests the stock is currently overvalued. The sales, executed under a Rule 10b5-1 trading plan, fetched prices ranging from $116.0188 to $125.31, resulting in a total transaction value of $4,540,528. Following the transactions, Agrawal directly owns 145,588 shares of Coreweave, Inc. Class A Common Stock. Additionally, his spouse directly holds 115,905 shares, and 57,952 shares are held by the Yosemite 2025 GRAT, for which Agrawal serves as the sole trustee and beneficiary. In other recent news, CoreWeave announced a significant expansion of its AI infrastructure investment in the United Kingdom, increasing its commitment by £1.5 billion to a total of £2.5 billion. This move aligns with the UK Government's Compute Roadmap and is expected to generate local jobs in engineering and operations. Meanwhile, CoreWeave has entered into a new order agreement with Nvidia, valued at $6.3 billion, under its existing Master Services Agreement. This agreement requires Nvidia to purchase any unsold capacity through April 2032, subject to specific conditions. Cantor Fitzgerald reiterated its Overweight rating for CoreWeave, maintaining a price target of $116.00, highlighting the importance of the Nvidia deal. Additionally, Citizens JMP upgraded CoreWeave to Market Outperform, citing the growing trend of hyperscale outsourcing in the GPU-as-a-Service market. Barclays has kept its Equalweight rating on CoreWeave, also emphasizing the Nvidia agreement. These developments reflect CoreWeave's strategic moves in the cloud computing sector, drawing attention from various investment firms. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

CoreWeave's Shares Climb on Unveiled $6.3 Billion Nvidia Deal

CoreWeave shares got a boost after the company said it secured a new order for cloud computing capacity under a previously undisclosed contract with Nvidia that's worth up to $6.3 billion. The stock was up 8% at $120.91 in early trading. The company went public earlier this year with an initial public offering price of $40 a share. The provider of AI cloud services said Monday morning that the deal, inked in April 2023, obligates Nvidia to buy up unsold data-center capacity that hasn't been fully utilized by CoreWeave's other customers. The arrangement runs through April 2032. The contract shows an even stronger relationship between CoreWeave and Nvidia than previously understood. Nvidia owns a 6.6% stake in CoreWeave, and CoreWeave's data centers use Nvidia's chips, including its coveted Blackwell line. CoreWeave said Monday that it is disclosing the capacity deal now because it is "no longer immaterial in amount or significance." The agreement will remain in place until either all outstanding orders under contract are expired or terminated, or the deal is terminated in accordance with its terms, the company said. Either Nvidia or CoreWeave can terminate the deal with 30 days written notice of a contract breach or if either company files for bankruptcy.

CoreWeave, Nvidia sign $6.3 billion order for cloud computing capacity

(Reuters) - Data center operator CoreWeave said on Monday it had signed a new order with Nvidia with an initial value of $6.3 billion, in a deal that guarantees that the AI chipmaker will purchase any residual cloud capacity not sold to customers. Shares of CoreWeave rose 6.9% in early trading following the news. The latest order, which requires Nvidia to purchase any unsold capacity through April 13, 2032, builds on their existing partnership. CoreWeave operates AI data centers in the U.S. and Europe, offering access to Nvidia's GPUs, which are highly sought after for training and running large AI models. Monday's order was formalized under an April 2023 agreement, CoreWeave said. (Reporting by Harshita Mary Varghese in Bengaluru; Editing by Sriraj Kalluvila)