CoreWeave's stock price jumped as high as 26% on Friday, reaching a record peak after Nvidia disclosed a significant stake in the AI cloud computing firm. An SEC filing revealed that Nvidia holds 24.2 million CoreWeave shares, valued at $900 million at the end of March 2025. This stake is now estimated to be worth nearly $1.6 billion, demonstrating Nvidia's confidence in CoreWeave's pivotal role in AI infrastructure.
Nvidia's investment strategy involves leveraging CoreWeave's GPU infrastructure to broaden its reach in the AI development space without establishing its own cloud service. CoreWeave rents out Nvidia's high-powered GPUs to clients building AI models. CoreWeave's first-quarter revenue saw a 420% year-over-year increase, surpassing analyst expectations. This impressive growth and strategic alliance with Nvidia position CoreWeave as a key player in the AI race.
CoreWeave's stock has gained over 100% from its IPO price of $40 in late March, outperforming the Nasdaq Composite Index and the broader US stock market. CoreWeave transitioned from crypto mining to AI cloud services, leveraging its GPU infrastructure. The company's data centres are equipped with Nvidia chips, solidifying its position in the AI sector.
