Nvidia Makes $2B CoreWeave Investment for AI Factories Buildout
AI factories are on the agenda as Nvidia has made a $2 billion investment in CoreWeave.
The chip giant purchased CoreWeave’s Class A common stock at $87.20 per share, building on their previous $6.3 billion investment from four months ago that secured a 6.6% stake.
The partnership aims to construct more than 5 gigawatts of AI factories by 2030. This means computing infrastructure that could reshape how AI systems are built and operated on a global scale.
Jensen Huang, Founder and CEO of Nvidia, said, “Together, we’re racing to meet extraordinary demand for Nvidia AI factories — the foundation of the AI industrial revolution.”
This deal is all part of a trend. Major tech companies spent a combined $437 billion on AI infrastructure in 2025, with hyperscaler capital expenditures projected to jump 40% in early 2026.
AI’s future
While Nvidia’s $2 billion represents just a fraction of the estimated $250 billion total cost for the planned infrastructure expansion, this is about much more than money—it’s about positioning for a technological revolution.
CoreWeave’s recent deal-making spree tells the story of explosive demand. The startup locked in a $14.2 billion agreement with Meta and a separate $6.5 billion deal with OpenAI.
The partnership with Nvidia runs deeper than financial backing. CoreWeave will deploy Nvidia’s Rubin platform technology, including future architectures and BlueField networking systems.
What’s driving this investment wave? Specialized AI cloud providers were projected to exceed $23 billion in revenues for 2025, following unprecedented compute demand from Big Tech companies racing to build AI capabilities.
CoreWeave’s rise
Eight years ago, CoreWeave didn’t exist as we know it today. The company’s origin story is certainly different: traders at a New York hedge fund in 2017 decided to mine cryptocurrency for their fantasy football league. They bought Nvidia graphics cards to do it.
When the crypto market crashed in 2018, most miners went bankrupt. The former hedge fund traders saw opportunity where others saw disaster, acquiring discounted hardware from insolvent miners. That prescient bet on Nvidia hardware positioned them perfectly for the AI boom that followed.
Fast-forward to today: the cloud provider now operates dozens of data centers and owns several hundred thousand GPUs. Each computing rack costs several million dollars and consumes more electricity annually than 100 homes.
The relationship with Nvidia has been years in the making. Nvidia has served as CoreWeave’s core supplier since its early days, making this investment a formalization of an already deep partnership. After completing its public listing on Nasdaq in March 2025, the former crypto miners have become a poster child for the AI infrastructure boom.
The AI infrastructure race
This partnership represents more than a business deal—it’s a response to demand that’s reshaping global infrastructure investment. The numbers are intriguing: data center capacity of 122 gigawatts is projected to be built from 2026-2030, with estimated costs reaching $5-7 trillion.
But this infrastructure gold rush faces significant headwinds. Critics point to circular financing patterns where Nvidia invests in companies that primarily buy Nvidia products, raising transparency concerns. The economics are brutal: AI hardware depreciation rates of 20-30% annually make this infrastructure essentially perishable.
Despite these challenges, cumulative AI-related investment could potentially reach more than 10% of U.S. GDP by three years from now.
The question is whether companies like Nvidia and CoreWeave can execute on this unprecedented scale while navigating the complex economics of an industry still defining its future.
Jack Buser, the global director for games at Google Cloud, compared equipping game developers with AI to giving them Iron Man’s suit.
The post Nvidia Makes $2B CoreWeave Investment for AI Factories Buildout appeared first on eWEEK.