Why Nvidia’s $2B bet on debt-ridden CoreWeave could reshape the future of AI compute

DCM Editorial Summary: This story has been independently rewritten and summarised for DCM readers to highlight key developments relevant to the region. Original reporting by Tech Crunch, click this post to read the original article.

Nvidia has announced a $2 billion investment in CoreWeave to accelerate the data center company’s expansion plans, aiming to add over 5 gigawatts of AI computing capacity by 2030. This move deepens Nvidia’s existing relationship with CoreWeave, as the chipmaker purchased Class A shares at $87.20 each. As part of the agreement, both companies will collaborate to build “AI factories,” or advanced data centers, that will utilize Nvidia’s technology. CoreWeave will integrate several of Nvidia’s latest products, including the upcoming Rubin chip architecture, Bluefield storage, and the Vera CPU line.

You’ll see that this partnership signals strong support for CoreWeave, which has faced scrutiny for its heavy reliance on debt—reportedly $18.81 billion as of September 2025—to fuel its AI infrastructure projects. Despite concerns, CEO Michael Intrator has defended the company’s strategy, emphasizing the need for collaboration to meet skyrocketing demand for AI resources. CoreWeave’s shift from crypto mining to AI data services has allowed it to capitalize on the growing AI market.

Since its IPO in March 2023, CoreWeave has been expanding aggressively, acquiring a number of AI-related companies such as Weights & Biases, OpenPipe, Marimo, and Monolith, while also strengthening its cloud partnership with OpenAI. It now counts major tech giants like OpenAI, Meta, and Microsoft among its clients, positioning itself as a key player in AI infrastructure.

This deal also includes Nvidia assisting CoreWeave in securing land and power for new data centers, and incorporating CoreWeave’s platform into Nvidia’s reference architecture for cloud and enterprise solutions. Following the news, CoreWeave’s shares rose by more than 15%, reflecting investor confidence. For Nvidia, this marks just one of many recent investments aimed at maintaining its leadership in the rapidly evolving AI space.