CoreWeave and Nvidia Ink $6.3 Billion Cloud Computing Deal, Strengthening AI Infrastructure Partnership

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, Nvidia sign $6.3 billion order for cloud computing capacity

Sept 15 (Reuters) - Data center operator CoreWeave (CRWV.O), opens new tab said on Monday it had signed a new order with Nvidia (NVDA.O), opens new tab 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 Our Standards: The Thomson Reuters Trust Principles., opens new tab

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'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)