CoreWeave (CRWV) Jumps 10.7% on Billion-Dollar Backing

We recently published 10 Big Names With Easy 10-30% Gains. CoreWeave Inc. (NASDAQ:CRWV) was one of the best performers on Tuesday.

CoreWeave extended its winning streak to a third consecutive day on Tuesday, jumping 10.73 percent to close at $108.86 apiece after earning a billion-dollar backing from Nvidia Corp.

In a statement, Nvidia announced the acquisition of $2 billion common shares in CoreWeave Inc. (NASDAQ:CRWV) at a price of $87.20 apiece, reflecting its confidence in the latter’s business, team, and growth strategy as a cloud platform built on Nvidia infrastructure.

The total investment would help support CoreWeave Inc.’s (NASDAQ:CRWV) plan to accelerate the development of more than 5 gigawatts of AI factories by 2030 in a bid to advance global adoption of the sector.

Investment aside, the two companies also joined forces to build more AI factories developed and operated by Nvidia’s accelerated computing platform technology.

They also intend to leverage the semiconductor giant’s financial strength to accelerate CoreWeave Inc.’s (NASDAQ:CRWV) acquisition of land, power, and shell to build more sites.

They would also deploy multiple generations of Nvidia infrastructure such as the Rubin platform, Vera CPUs and BlueField storage systems, among others.

“From the very beginning, our collaboration has been guided by a simple conviction: AI succeeds when software, infrastructure and operations are designed together,” said CoreWeave Chairman and CEO Michael Intrator.

Photo by ThisisEngineering on Unsplash

“NVIDIA is the leading and most requested computing platform at every phase of AI—from pre-training to post-training—and Blackwell provides the lowest cost architecture for inference. This expanded collaboration underscores the strength of demand we are seeing across our customer base and the broader market signals as AI systems move into large-scale production,” he noted.

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Disclosure: None. This article is originally published at Insider Monkey.