Nvidia Invests an Additional $2 Billion in CoreWeave

Investment Overview - Nvidia plans to invest an additional $2 billion into CoreWeave by purchasing common stock at a price of $87.20 per share, indicating strong confidence in CoreWeave's management and capacity expansion plans [1] - CoreWeave's stock experienced a significant increase of over 9% in pre-market trading following the announcement of Nvidia's investment [4] Financing Structure - Nvidia's CEO Jensen Huang clarified that the investment is not circular financing, emphasizing that it represents a small portion of the total funding CoreWeave will need to meet existing demand for data center capacity [2] - The investment is consistent with Nvidia's broader strategy of investing across the AI stack, and it is explicitly stated that CoreWeave is not required to use Nvidia chips in exchange for the investment [4] Competitive Landscape - The investment comes at a time when competitors like AMD and Intel are under pressure, as Nvidia is set to offer its CPU as a standalone product, with CoreWeave being the first to deploy it [5]