NVIDIA Corp.-backed CoreWeave disclosed it has secured a $6.3 billion order for cloud-computing capacity from the artificial intelligence (AI) powerhouse.
The latest order, which requires NVIDIA to buy any unsold capacity through April 13, 2032, builds on an April 2023 agreement, CoreWeave said in a filing.
“The agreement reflects the scale, trust, and pivotal role CoreWeave plays in accelerating AI innovation worldwide,” a CoreWeave spokesperson said of the deal that ensures NVIDIA purchase any cloud capacity not sold to customers.
CoreWeave continues to make substantial investments in hundreds of thousands of NVIDIA GPUs, which the company leases to clients through its cloud infrastructure platform. The GPU-focused cloud provider, which completed its initial public offering in March, counts NVIDIA among its investors, with the chip giant holding approximately 7% of CoreWeave’s Class A shares as of June 30.
The relationship highlights the interconnected nature of the AI infrastructure ecosystem, where NVIDIA serves as both a key supplier and investor in one of its major customers. CoreWeave’s business model centers on purchasing large quantities of high-end GPUs and providing access to this computing power through rental agreements with companies requiring intensive AI and machine learning capabilities.
CoreWeave disclosed significant supply chain risks in its IPO filing, acknowledging its dependence on a limited supplier base, with all infrastructure GPUs sourced exclusively from NVIDIA at the time of going public.
Its reliance mirrors that of major cloud providers Amazon.com Inc., Alphabet Inc.’s Google, Microsoft Corp., and Oracle Corp., all of whom depend on NVIDA to satisfy surging AI demand.
CoreWeave reported second-quarter revenue of $1.21 billion, up 207% from the previous year. However, profitability remains elusive. The company said it lost $290.5 million during the same period.
Despite its heavy reliance on NVIDIA hardware, CoreWeave has secured major clients for its computing services. The company landed a five-year contract with OpenAI worth $11.9 billion, representing a substantial portion of its forward revenue pipeline.
News of the amended NVIDIA deal sent CoreWeave shares up 8% in trading Monday, pushing the company’s market capitalization above $58 billion and establishing it as one of the most valuable players in the AI infrastructure sector.
