Nvidia Pumps $2 Billion More Into AI Cloud Partner CoreWeave, Unveils New Chip
Nvidia is deepening its strategic partnership with cloud provider CoreWeave with a fresh $2 billion investment and will launch a new high-bandwidth AI chip exclusively through its platform in early 2025.
Key Takeaways
- Major Investment: Nvidia invests an additional $2 billion in CoreWeave, extending a deal from last year.
- New AI Chip: A “high-bandwidth” variant of the Blackwell B200 processor will be sold via CoreWeave in H1 2025.
- Skyrocketing Valuation: CoreWeave’s valuation has jumped from $2 billion in 2023 to about $19 billion.
- Strategic Symbiosis: CoreWeave is both a key customer and a critical reseller of Nvidia’s AI chips.
Strengthening a Critical Alliance
According to sources familiar with the private deal, this funding extends an agreement reached in 2023. Both Nvidia and CoreWeave declined to comment.
CoreWeave has become a pivotal player in the AI infrastructure race. The startup, which pivoted from cryptocurrency mining to AI, operates US data centers with plans for European expansion. It has raised massive capital—approximately $4.6 billion in equity and $10.5 billion in debt—primarily to purchase Nvidia’s processors and build capacity for booming AI developer demand.
The New Blackwell B200 Variant
Alongside the investment, Nvidia is launching a new “high-bandwidth” version of its flagship Blackwell AI processor, the B200. This chip will be available exclusively through CoreWeave in the first half of 2025, cementing the provider’s role as a primary distribution channel.
Fueling Nvidia’s Meteoric Rise
The partnership is mutually beneficial. CoreWeave’s massive procurement of chips helps drive Nvidia’s extraordinary financial performance. Nvidia’s revenue more than tripled last fiscal year, and the company briefly became the world’s most valuable last month, surpassing Microsoft and Apple.
CoreWeave itself is on an aggressive growth path, building data centers across the US and the UK, and recruiting talent from rivals like Amazon Web Services (AWS).
Investor Backing
CoreWeave’s investor base includes Magnetar Capital, Fidelity Management & Research Co., and JPMorgan Chase & Co., according to PitchBook data.
